Investment Treaty Arbitration

Investment treaty arbitration is a formal and binding international dispute resolution mechanism rooted in agreements, or treaties, made between two or more countries. These treaties establish rules for settling disputes concerning investments made by investors from these countries. Notably, they grant investors certain substantive protections and the right to directly file claims against host countries for alleged treaty violations through arbitration. These treaties, numbering over 2,500 globally, primarily consist of bilateral investment treaties (BITs) but also include an increasing number of free trade agreements (FTAs) and multilateral treaties with investment protections.

History