Balancing Investment Protection and State Regulatory Autonomy in Bilateral Investment Treaties (BITs)

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Balancing Investment Protection and State Regulatory Autonomy in Bilateral Investment Treaties (BITs)

Sijuola Atanda-Lawal PhD

Abstract

This paper explores how Bilateral Investment Treaties (BITs) seek to strike a balance between two fundamental objectives: safeguarding the interests of foreign investors and preserving the regulatory autonomy of host states to promote public welfare. Historically, BITs have tended to prioritize investor protection, often at the expense of domestic policy space. However, a noticeable shift is emerging in recent treaty practice. The study highlights how modern BITs are increasingly incorporating clearer provisions, explicit exceptions, and more transparent dispute resolution mechanisms. These developments aim to maintain a favorable investment climate while empowering states to implement policies that address critical national and global concerns. Through the analysis of case studies and pressing global challenges such as climate change, the paper underscores the need for ongoing reform. It concludes that well-drafted, balanced treaties can simultaneously protect investor interests and uphold state sovereignty. Finally, the study offers practical recommendations for updating older BITs to align with contemporary standards of fairness, sustainability, and development.

Keywords: ForeignInvestment; Bilateral Investment Treaties (BITs); Balancing Investment Protection

IJLGP 6(2)1-10Download

Cite as:
Atanda-Lawal, S.  (2025). Balancing Investment Protection and State Regulatory Autonomy in Bilateral Investment Treaties (BITs). International Journal of Law and Global Policy, 6(2), 1-10. https://doi.org/10.5281/zenodo.18268116

©2025 The Author(s). International Journal of Law and Global Policy published by ACADEMIC INK REVIEW.

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