About: Bilateral investment Treaties (BITs) are agreements between two Countries (States) for the reciprocal promotion and protection of investments in each other’s territories by individuals and companies situated in either State.
Aim: To encourage foreign investors to invest in a State and there by contributing towards overall developments and advancements of the economy.
Some essential clauses covered under BIT:
- Applicability
- Fair and Equitable Treatment and Full Protection & Security
- National treatment and Most-favored-nation treatment,
- Expropriation,
- Dispute settlement mechanisms, both between States and between an investor and a State.
