Bilateral Investment Treaties

A Bilateral Investment Treaty (BIT) sets the terms for private investment by citizens and companies of one country with another country. The U.S. has bilateral investments treaties with many countries aimed at protecting private investment and promoting economic interests.

"Investment" is defined in almost all U.S. BITs as every kind of investment owned or controlled, directly or indirectly, by a national or company, including:

  1. A company;

  2. Forms of equity participation in a company (such as shares, stocks);

  3. Forms of debt interest in a company (such as bonds, debentures);

  4. Contractual rights;

  5. Tangible property, including real property;

  6. Intangible property (such as leases, mortgages, liens and pledges);

  7. Intellectual property (such as copyrights, patents, industrial designs, trade secrets, trade names, etc.); and

  8. Rights conferred pursuant to law, such as licenses and permits.

Through its bilateral investment treaty program, the U.S. provides treaty countries with certain benefits such as:

  1. Favorable treatment in establishment/acquisition of trade, through management, operation, and expansion;

  2. Management of expropriation, including payment of timely, adequate and effective compensation for expropriation;

  3. Protection of investors’ right to hire the lead managerial staff of their choice, regardless of nationality (for example, through E-1 and E-2 visas).

Of course, each Bilateral Investment Treaty is specifically tailored to each country and only certain treaties allow for qualifying nationals to apply for visas to work in the U.S., such as E-1 (Treaty Trader) and E-2 (Treaty Investor) visas. Treaties that confer eligibility for E status are generally made on a reciprocal basis. See our E-1/E-2 visa page for a list of qualifying countries.

Foreign nationals of a qualifying treaty country (such as one with which the U.S. maintains a bilateral investment treaty) can qualify for certain types of visas to enable them to work and engage in international trade in the U.S. There are two types of such visas: E-1 (Treaty Trader) and E-2 (Treaty Investor). Nationals of qualifying treaty countries can receive these visas if they meet specific qualifications.  See our E-1/E-2 visa section for more detailed information.

(Updated 10/4/2012 by AG)

For more information on the E-1, E-2 category, please click one of the following links: