BITs also support the development of high-quality international law standards for investment. For U.S. investors, BITs provide a number of important protections. For instance, they ensure that U.S. investors are entitled to be treated as favorably as their domestic and foreign competitors, both when establishing their investment and thereafter. BITs also provide U.S. investors with the right to transfer funds into and out of the host country without delay at a market rate of exchange. A BIT prohibits specified performance requirements as a condition of investment, and thus limits the host government's ability to require investors to adopt inefficient and trade-distorting practices.
Expropriation is permitted only in accordance with customary international law standards.
BITs provide U.S. investors with the right to submit an investment dispute with the treaty partner's government to international arbitration. Thus far, we have agreements with Honduras, Nicaragua, El Salvador, Panama, Argentina, Bolivia, Jamaica and Ecuador. Of these, the BITs with Argentina, Ecuador, and Panama are in force, while the other four will be submitted shortly to the U.S. Senate for its advice and consent. We have held discussions with most other countries in the region, including ongoing talks with Peru, Colombia and Venezuela. These privileges carry obligations that require the beneficiary countries to institute economic, labor and regulatory reforms.