Do We Really Need Bits? Toward a Return to Contract in International Investment Law
Asian Journal of WTO & International Health Law and Policy, Vol. 3, No. 1, pp. 121-146, March 2008
27 Pages Posted: 4 Jun 2008
In contrast to arguments commonplace in the extant literature promoting bilateral investment treaties (BITs) I argue that BITs are not necessary to resolve any pressing problems of credible commitment or obsolescing bargain. I point out that investors have long had the ability to credibly commit to treat investors fairly through investment contracts. I recommend that developing countries consider forgoing BITs in favor of a regime in which foreign investors are required to bargain for special treatment.
Keywords: bilateral investment, BITs, international investment law, arbitration, investment risks, BIT substitutes
Suggested Citation: Suggested Citation