Bilateral Investment Treaties
Topic category
Trade and Investment
Bilateral Investment Treaties (BITs) are intended to regulate the commercial investment relationships between two countries. These are supposed to facilitate trade and investment by providing security for investments. However, it is common practice for BITS to establish ISDS mechanisms that allow for transnational companies to sue the states in which they operate based on a very broad interpretation of damage to investments. This has led to a surge in litigations against states and prompted a growing number of governments to seek to cancel or amend existing BITs.
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