The United States announces updated Model Bilateral
Investment Treaty
On April 20, 2012, the U.S. Department of State and the
Office of the United States Trade Representative announced the posting of a
revised Model Bilateral Investment Treaty (BIT). The new document, 42 pages in
length, updates the 2004 Model BIT. It can be found here.
Additional background materials can be found here
and here. Here is a link to the USTR page on the 40 current US BITs. Some non- U.S. BITs and
additional investment treaty information, including other model
BITs can be accessed here. BITs for OAS countries can be located here.
A BIT provides binding legal rules for the treatment of one
country’s investors by a foreign jurisdiction and aims to protect the interests
of the overseas investor. Their general aims are to protect the interests of a
country’s investors when making investments in countries where investors’
rights may not be sufficiently protected by existing treaties or international
agreements. BITs cover topics such as fair and equitable treatment of foreign
investors compared to domestic investors, issues of compensation if/when
expropriations take place, questions concerning management personnel, and can be helpful when they address funds
transfers (possibly stipulating market rates), and may also include a
stipulation concerning the form of dispute resolution to be used. BITs can promote
transparency and are generally seen as supporting the development of
international law standards.
According to the State Department press release: “The
Administration made several important changes to the BIT text so as to enhance
transparency and public participation; sharpen the disciplines that address
preferential treatment to state-owned enterprises, including the distortions
created by certain indigenous innovation policies; and strengthen protections
relating to labor and the environment.”
Some books that may be of interest include:
Evolution in Investment Treaty Law and Arbitration K3830
.E96 2011
Bilateral Investment Treaties: History, Policy, and Interpretation (2010) – on order
Bilateral and Regional Trade Agreements: commentary and
analysis HF1721 .B485 2009
Written by Joan Policastri, Foreign, Comparative & International Law Librarian
Posts
