Q. Consider the following statements:
1.A Bilateral Investment Treaty (BIT) is an agreement between two countries to protect investments made by investors from both countries.
2.One key feature of BITs is that they allow foreign investors to directly sue the host country in an international tribunal if they believe their rights under the treaty have been violated.
3.BITs require host states to prioritize foreign investor interests over domestic concerns.
Which of the statements given above are correct?
Answer: A
Notes:
Explanation –
Statements 1 and 2 are correct. BITs are agreements between two countries designed to protect and promote investments made by investors from each country in the other’s territory. BITs often include provisions for investor-state dispute settlement (ISDS), which allows investors to bring claims against the host country in international arbitration if they believe their rights under the BIT have been breached.
Statement 3 is incorrect. While BITs provide protections for foreign investors, they do not explicitly require host states to prioritize foreign investor interests over domestic concerns. Instead, they establish standards for treatment to prevent unfair practices.
Source: The Hindu
