BANGLADESH INSTITUTE OF INTERNATIONAL AND STRATEGIC STUDIES

REVISITING BANGLADESH’S BITS: INSIGHTS FROM INTERNATIONAL INVESTMENT LAW AND COMPARATIVE GLOBAL PRACTICES

Author: Shahrima Tanjin Arni

DOI Link: https://www.doi.org/10.56888/BIISSj2025v46n2a4

ABSTRACT

As states are increasingly revising their Bilateral Investment Treaties (BITs) to align with modern priorities, significant challenges arise. Terminating outdated treaties alone do not relieve states from obligations under international law, and ‘survival clause’ often extends commitments. Revising and renegotiating BITs also requires a thorough cost-benefit analysis, while model BITs frequently fail to address structural imbalances between negotiating parties. This article focuses on strategies Bangladesh can adopt in transitioning from older BITs to contemporary frameworks, drawing insights from global practices. Examining case studies of countries like Venezuela, Ecuador, India, and Brazil, the article highlights the varied approaches states implement, ranging from unilateral termination, withdrawal from dispute settlement mechanisms to adopt model BITs. These experiences underscore that there is no universal solution for modernising BITs. Effective reform depends on tailoring strategies to each state’s unique domestic context while ensuring the legality, sustainability, and balance of investment frameworks. In the context of Bangladesh, where most existing BITs are outdated and expose the state to potential arbitration risks, a context-specific approach is imperative. Reform efforts must balance the need to attract foreign direct investment with safeguarding regulatory autonomy and promoting national development priorities. The article concludes that Bangladesh can benefit from lessons in international investment law by crafting a revised BIT framework that reflects its socio-economic realities and aligns with the evolving global landscape of investment governance.