investment treaty
An agreement between two or more states concerning the protection of private investments made by nationals of each in the territory of the other(s). Foreign investors claiming a breach of the treaty may enforce their rights against the host state via arbitration (typically at the International Centre for the Settlement of International Disputes). There is an important distinction between bilateral investment treaties (BITs) and multilateral investment treaties (MITs). See also expropriation; fair and equitable treatment. |