Bilateral Investment Treaties (BITS) In International Law: Balancing Investor Rights And Host State

Niranjan Ganesh M & Sowbarniga B, BBA LLB (Hons), School of Law, Sastra University, Tamilnadu, India

1. ABSTRACT:

A crucial body of international law known as the Bilateral Investment Treaties (BITS) attempts to maintain the sovereign authority of host governments while simultaneously defending the rights of foreign investors. In-depth analysis of BIT's complex dynamics and their critical function in preserving a steady and predictable global investment environment are provided in this research study. The first section of the paper looks at the basic rights that foreign investors usually have under BITS. These rights include the right to fair and equitable treatment, protection from expropriation, and the ability to resolve disputes through investorstate arbitration. It also emphasizes how crucial the national treatment principle and openness are to these agreements. By providing a detailed analysis of these investor rights, the paper underscores the mechanisms and safeguards that BITS have established to foster international investment.

This study explores the sacred concept of host state sovereignty concurrently. The article emphasizes how BITS respect host nations' sovereign sovereignty even as they work to protect investment interests. It examines state regulatory authority, arbitration's consentbased structure, and the exceptions that host governments might make to safeguard critical interests including public safety and welfare. This study examines the key problem of BITS: finding a balance between investor protection and host state sovereignty, with a focus on the overall goal of balance. It examines case studies and precedents in detail to show how this balance is reached on an individual basis. In interpreting and implementing these accords, arbitral tribunals and international courts are essential because they carefully balance the particulars of each case against the ideals of justice and equity. By clarifying the complex interactions between investor rights and host state sovereignty in the context of BITS, this research adds to the continuing discussion in international law. The conclusion emphasizes how this fragile equilibrium is dynamic and how important it is to modify it to fit the evershifting dynamics of the world economy.