International Investment Law : An Alternative For Investment Protection And Promotion Of Investment

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BITs International investment law was developed as a response to the inadequacies of the customary international law in protecting foreign property by providing responsibility to host state.[footnoteRef:2] Most of capital exporting countries was developed states which required better market access commitments from capital exporting countries, and also better standards of investment protection.[footnoteRef:3] The failure to conclude multilateral investment agreement forced developed states to find an alternative for investment protection. Consequently, bilateral investment treaties become the most common legal tools to provide both protection and promotion of investment.[footnoteRef:4] In addition, according to (?..) a massive breakthrough in the development of international investment regime occurred after the end of World War II during the Bretton Woods negotiations, the idea came from Keynes to create an international trade organization.[footnoteRef:5] [2: Historical development of investment treaties p.71] [3: Historical development of investment treaties p.71] [4: Historical development of investment treaties p.71] [5: Is it time to change traditional BITs] Bilateral investment treaty (BIT) was signed for the first time in 1959[footnoteRef:6] in the purpose to create legal certainty in international investment law.[footnoteRef:7] In addition, it could be claimed that the purpose of early BIT (Germany-Pakistan BITs) is to spread capital from developed state to

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