Introduction

The number of Bilateral Investment Agreements (BITs) quintupled during the last decade. Most developing countries have entered into one or more BITs with the expectation that they will create a legal framework that would attract foreign direct investors. While there is no evidence suggesting that entering into such treaties has a tangible effect on increasing foreign direct investment (FDI),[1] governments have been ready to limit their sovereign rights in various respects, notably in relation to the settlement of disputes relating to investments in ...