Bilateral Investment Treaties (BITs): Definition and Scope
Introduction
A Bilateral Investment Treaty (BIT) is a legal agreement between two countries that outlines the rights and obligations of investors from one country who make investments in the other.
Key Purposes
The primary purpose of BITs is to promote and protect foreign investments and create a favorable environment for investors.
Scope of Protection
BITs typically provide protection for a wide range of investments, including:
- Movable and immovable property
- Intellectual property
- Shares and other corporate interests
- Capital and profits
Germany-Russia BIT
The 1989 Bilateral Investment Treaty between the Federal Republic of Germany and the Union of Soviet Socialist Republics is a notable example of a BIT.
Case Study
The Germany-Russia BIT played a crucial role in the successful arbitration case brought by Franz J. Sedelmayer under the Stockholm Chamber of Commerce Rules.
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