Treaty Shopping and Unintended Consequences: BRICS in the International System
Forthcoming, BRICS and the Global Economy, Singapore: World Press Publishing
34 Pages Posted: 27 Mar 2018
Date Written: March 26, 2018
Countries around the world have signed a multitude of bilateral investment treaties (BITs), many of which leaves the parties vulnerable to legal action through Investor-State Dispute Settlement (ISDS). But unbeknownst to many of these countries at the time of signing, these BITs are also subject to abuse through a practice known as "treaty shopping," through which firms can sue other states via subsidiaries in a third country. This chapter examines several prominent cases of treaty shopping and strategies used by developing countries to insulate themselves.
Keywords: bilateral investment treaties, treaty shopping, ISDS, emerging markets, BRICs
Suggested Citation: Suggested Citation