An international investment Treaty (IIA) is a Agreement involving two or amassed countries designed to protect and create rules for cross-the-boarder investments. In other passage, it helps protect investors in one territory who own assets held in another native land. Countries that concur to an IIA build a commitment to handle the standards outlined in the Treaty to Non-native investments held inside their own borders.
Purpose
Preferential trade and investment agreements are designed to elevate and encourage trade between countries. The North American Free Trade Agreement (NAFTA) is an example of a preferential trade agreement. This type of agreement is designed to reduce or erase trade tariffs between countries and protect intellectual property rights for companies in both countries.
Bilateral Investment Treaties
A bilateral investment treaty is an IIA established between two countries. Both countries agree to treat investment from the other country with the same rules and protections. In other words, it is a reciprocal arrangement. Moreover to investment protection, these treaties are also used to elevate public policy by establishing bilateral rules designed to protect the environment and promote public health and safety.
Preferential Trade and Investment
Countries permit to IIA treaties for two important purposes. One is to elevate Non-native investment in their own community. Promises to protect and treat Non-native investments quite can comfort Non-native investment. Likewise, a homeland may comply to an IIA treaty to ensure its citizens' investments are treated fairly by partner countries when they invest abroad.
International Tax Agreements
Multinational corporations are companies that have investments and operations in more than one country. As a result, they may be subject to tax rules in both their home country and in the countries in which they operate. International tax agreements seek to set up bilateral rules of taxation for multinational corporations. Most often, these agreements eliminate double taxation for these types of corporations.
