Ensuring the right to transfer funds creates a predictable environment guided by market forces. The BIT limits the ability of host government to require that investors from the other country adopt inefficient and trade distorting practices. In particular, performance requirements, such as local content or export quotas, are prohibited. This provision may also open up new markets for producers and increase exports. Investors can purchase competitive components without restriction on inputs in their production of various products.
Investors can also import other products for distribution and sale in the local market.
And they cannot be forced, as a condition of establishment or operation, to export locally produced goods back to the home market or to third-country markets. The BIT gives investors the right to submit an investment dispute with the treaty partner's government to international arbitration. There is no requirement to use that country's domestic courts. The BIT gives investors the right to engage the top managerial personnel of their choice, regardless of nationality. U.S. exceptions are designed to protect government regulatory interests and to accommodate derogations from national treatment in existing federal and state laws.