Countries enter into enterprise agreements primarily to protect and indirectly encourage foreign investment and, increasingly, to liberalize these investments. The IIAs provide companies and individuals of contracting parties with enhanced security and security under international law when they invest or set up a business in other countries parties to the agreement. Reducing the investment risk associated with an IGE is designed to encourage businesses and individuals to invest in the country that AI has concluded. In this context, it is important to allow foreign investors to settle disputes with the host country through international arbitrations and not just through the host country`s national courts. 55 UNCTAD reports 942 known cases by the end of 2018. See UNCTAD, Investment Policy Hub, on investmentpolicy.unctad.org/news/hub/1611/20190528-fact-sheet-surge-in-isds-cases-continues-in-2018. There is no comparable database of state claims, but the academic letter suggests that these claims are relatively few. See Roberts, Anthea, State-to-State Investment Treaty Arbitration: A Hybrid Interdependen Theory oft Rights and Shared Interpretive Authority, 55 Harv. Int`l L.J.
1 (2014); Nathalie Bernasconi-Osterwalder, settlement of state disputes in investment contracts (International Institute for Sustainable Development, Oct 2014). 51 Ecuador has ended its bit after a multi-billion euro judgment against Occidental Petroleum. See Cecilia Olivet, Why Did Ecuador terminate All Its Bilateral Investment Treaty?, TNI (May 25, 2017), on www.tni.org/en/article/why-did-ecuador-terminate-all-its-bilateral-investment-treaties. Australia has threatened to withdraw from its ILOs and isDS system in response to the tobacco dispute filed by Phillip-Morris. However, Australia changed its mind following a change of government and ultimately prevailed in the case of simple packaging – Australia`s current position remains in favour of ISDS. See Australian Government, Department of Foreign Affairs and Trade, Australia`s Bilateral Investment Treaty, at dfat.gov.au/trade/investment/Pages/australias-bilateral-investment-treaties.aspx. Indonesia has stopped a number of bits and has been trying to renegotiate them, in part because of a reaction to the Churchill Mining case. See Leon E. Trakman – Kunal Sharma, Why Is Indonesia Endminating Its Bilateral Investment Treaty?, E.
Asia F. (September 20, 2014). The main objective of international tax treaties is to regulate the distribution of global income taxes of multinationals between countries. In most cases, this means abolishing double taxation. The substance of the problem lies in the differences of opinion between countries on who is responsible for the taxable income of multinationals. Most of the time, these conflicts are dealt with by bilateral agreements that deal exclusively with income taxation and sometimes on capital. However, in the past, some multilateral tax treaties and bilateral agreements dealing with taxation and other issues have also been concluded. A typical bit begins with a preamble that describes the general intent of the agreement and the provisions relating to its scope. This is followed by a definition of keywords that clarifies, among other things, the meanings of “investment” and “investor.”