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ISSC 2016 : International Soft Science Conference
Are Bilateral Investment Treaties (BITs) a Safe Haven to
Multinational Companies (MNCs)?
Ashraf M. A. Elfakharani
a
*, Rohana Abdulrahman
a
* Corresponding author: elfakharany.ashraf@yahoo.com
a*
School of Law Ghazali Shafie Graduate School of Government, Universiti Utara Malaysia, Sintok 06010, Malaysia,
elfakharany.ashraf@yahoo.com
Abstract
One criticism of the most of bilateral trade agreements is that they focus more on the rights than the
responsibilities of corporations. Limited liability was never intended to allow corporations to escape liability for
any breach of conduct. The International Covenants on Human Rights and the Declaration on the Right to
Development established that States are the primary duty bearers of human rights and that, as a consequence, each
State needed to regulate foreign investment within its jurisdiction. It is imperative to search for methods of holding
MNCs accountable and to regulate their operations so as to benefit local communities as well as the international
economic system and that should not be abused. This article reviews the very question on whether BITs are a safe
haven for encroachments of Multinational companies. It provides a review of the literature and various external
cases that exhibit possible abuse of the BITs provision in the respective host country. This article is intended to
provide an understanding as to why BITs are considered a safe haven for MNCs.
© 2016 Published by Future Academy www.FutureAcademy.org.uk
Keywords: Multinational Corporations; Arbitration; Human Rights; Bilateral Treaties; Encroachment.
1. Introduction
The world is seeing a tremendous development inside of the last few decennary, in the outside
venture, particularly in foreign direct investment (FDI). Generally, peregrine ventures are started by a
passive or arrangement between the peregrine organizations or speculators in the host nation. Such
common and two-sided assertion is tying between the gatherings included (Dolzer, & Stevens, 1995).
This understanding speaks to those sorts of organizations of respective connection going for puncturing
http://dx.doi.org/10.15405/epsbs.2016.08.34