What are BITs?
Bilateral investment treaties (BITs), referred to as foreign investment protection and promotion agreements (FIPAs) in Canada, can serve to alleviate much of the political and non-commercial risk associated with mining ventures and are a powerful tool for businesses seeking protection for their investments in foreign jurisdictions. In the event of a dispute, BITs enable investors to seek monetary damages from the foreign government by bringing a claim before an independent arbitral tribunal. Over the last decade or so, BITs have quickly emerged as a third option for businesses seeking protection for their investments in foreign jurisdictions. At the end of 2007, there were some 2,500 BITs in force worldwide, over eight times the number of BITs that existed in 1990. Canada’s BIT and FTA Activity Within the last couple of years, Canada has stepped up efforts in negotiating BITs, or in some cases free trade agreements (FTAs) that provide for similar investor protections, with a variety of
