What Is An International Investment Agreement

2021 October 15

Typical provisions of IPTs and IPTs are clauses on standards of protection and treatment of foreign investment, which generally address issues such as fair and equitable treatment, full protection and security, domestic treatment, and most-favoured-nation treatment. [1] Provisions on compensation for losses suffered by foreign investors as a result of expropriations or wars and conflicts are also generally a central element of these agreements. Most DIIs also regulate the cross-border transfer of funds related to foreign investments. Environmental regulations have also become increasingly common in AIAs. [2]:104 Key Concepts – The map structure displayed in the Select Mapped Treaty Elements tab is a “table of contents” that contains all associated contractual elements. It corresponds to the typical structure of an IIA. – The contract elements represented are elements of an investment contract that have been mapped as part of the IIA mapping project. The number of contract elements awarded exceeds 100. Each associated contract item has a set of predefined mapping options from the following. – Mapping options indicate the approach taken in the contract for the relevant represented contractual element. Mapping options can be “Yes/No” or they can specify more precisely the contractual approach (e.B.

the type of fair and equitable treatment clause (FET) – qualified/uns qualified/none, etc.). Each associated contract element contains the Inconclusive and Not Applicable options. Countries conclude ITAs primarily for protection and indirectly to promote foreign investment and, increasingly, with the aim of liberalizing such investment. IAAs provide companies and individuals of Contracting Parties with enhanced security and international security when investing in other Contracting States or establishing a business. Reducing the investment risk resulting from an IIA is intended to encourage companies and individuals to invest in the country that has completed the IIA. An important aspect in this context is to allow foreign investors to settle disputes with the host country through international arbitration, and not only with the national courts of the host country. An international investment agreement (IIA) is a type of treaty between countries that deals with issues relating to cross-border investments, usually with the aim of protecting, promoting and liberalizing such investments. Most IIAs cover foreign direct investment (FDI) and portfolio investment, but some exclude the latter. Countries that complete ITAs commit to comply with specific standards for the treatment of foreign investment in their territory. IADs also establish procedures to resolve disputes if these obligations are not met.

The most common types of IIAs are bilateral investment treaties (IPTs) and preferential trade and investment agreements (IPTIs). International tax treaties and double taxation treaties (DTCs) are also considered IIAs because taxation generally has a significant impact on foreign investment. The OECD`s work on international investment agreements reinforces domestic liberalisation gains and legal certainty for investment. .

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