Bilateral investment treaties (BITs) provide a powerful but underutilised tool for corporates facing sovereign action affecting their cross-border investments. Treaty-based investor-state arbitration offers a neutral forum, enforceable awards under the New York Convention, and procedural protections largely independent of the host-state's domestic legal system.
This article walks through the threshold questions every corporate counsel should consider in advance of cross-border investment: which treaties cover the relevant corporate structure; what substantive protections apply (fair-and-equitable treatment, expropriation protections, MFN clauses); and what procedural pathways are available for asserting claims if sovereign action becomes a possibility.
Authors