Introduction

A fundamental paradox underlies international investment relations: while governments recognize the importance of foreign direct investment (FDI) in their national development strategies and acknowledge the need to regulate FDI; negotiations on a cross-sectoral multilateral investment treaty have universally failed. This has created a regulatory vacuum in the area of investment, which has prompted countries to map investment regulations through a bilateral approach, weaving a complex web of bilateral investment treaties (BITs). The global BIT network today comprises over 3000 ...