A bilateral investment agreement (BIT) is an agreement that sets the conditions for private investment by nationals and enterprises of one state in another country. This type of investment is called foreign direct investment (FDI). NTBs are defined by trade pacts. One of the precursors of the ILO in the nineteenth century was the Contract of Friendship, Commerce and Navigation (FCN).  BITs provide for the transferability of investment-related funds within and outside a host country without delay and using a market exchange rate. International investment law governs foreign direct investment and the settlement of disputes between foreign investors and sovereign States. The ILO generally offers better national or most-favoured-nation treatment for the entire life cycle of investments, from creation or acquisition to sale, management, operation and expansion. promote the adoption of market-oriented domestic policies that treat private investment in an open, transparent and non-discriminatory manner; and NTBs limit the imposition of performance requirements, such as.B. local content targets or export quotas, as a precondition for the establishment, acquisition, extension, management, realisation or operation of an investment.
The U.S. bilateral investment agreement helps protect private investment, develop market-oriented policy in partner countries, and promote U.S. exports.