IISD Best Practices Series: Terminating a Bilateral Investment Treaty
This paper from IISD's Best Practices series examines recent state practice in bilateral investment treaty (BIT) terminations and related drafting, along with presenting options and recommendations for states interested in addressing their stock of older BITs through termination and renegotiation.
The paper begins by examining treaty termination in the context of public international law, along with the types of termination clauses that are common in BITs. It then examines recent trends in the drafting of termination and survival clauses in investment treaties. The paper considers how these terminations are implemented in practice, as well as what states have done to address survival clauses when terminating these treaties. Lastly, the paper sets out factors that states may wish to consider in deciding how to terminate a BIT, and outlines recommendations for preparing for and carrying out termination.