In recent decades, the United States has entered into binding international investment agreements (IIAs) with foreign countries to facilitate investment flows, reduce restrictions on foreign investment, expand market access, and enhance investor protections, while balancing other policy interests. This report answers frequently asked questions about IIAs made between the United States and other countries. What are international investment agreements (IIAs)? For the United States, the primary forms of IIAs are bilateral investment treaties (BITs) and BIT-like investment chapters in regional and bilateral free trade agreements (FTAs). Are there multilateral rules on investment in the World Trade Organization (WTO)? Investor-State Dispute Settlement (ISDS).
In recent decades, the United States has entered into binding investment agreements with foreign countries to facilitate investment flows, reduce restrictions on foreign investment and expand market access, and enhance investor protections, while balancing other policy interests. Some World Trade Organization (WTO) agreements address investment issues in a limited manner. In the absence of a comprehensive multilateral agreement, bilateral investment treaties (BITs) and investment chapters in free trade agreements (FTAs), known as international investment agreements (IIAs), have been the primary tools for promoting and protecting international investment.
This report answers frequently asked questions about U.S. IIAs including provisions for investor-state dispute settlement.