Council Emphasizes Need for ‘Strong, Well-Crafted’ Agreement
Washington, DC – The National Foreign Trade Council (NFTC) today welcomed news that the United States and China have agreed to enter negotiations on a bilateral investment treaty (BIT). The NFTC also encouraged negotiators to develop a strong, well-crafted agreement that will provide mutual benefits and protections to the U.S. and Chinese business communities and investors. NFTC President Bill Reinsch released the following statement:
“We commend the U.S. and Chinese governments for working diligently to reach an agreement on plans to negotiate an investment treaty, and view this development as an important step forward in U.S.-China economic relations.
“At the same time, we urge the negotiators to develop a solid agreement that could represent the ‘gold standard’ in bilateral investment treaties, versus a deal that would be less ambitious and not afford the protections and assurances that will be sought by U.S. investors.”
According to the Office of the U.S. Trade Representative, in general BIT agreements are designed to: protect U.S. investment abroad in those countries where U.S. investors’ interests are not sufficiently protected through existing agreements such as U.S. treaties of Friendship, Commerce and Navigation; encourage countries to adopt market-oriented domestic policies that treat private investment in an open, unbiased and transparent manner; and support the development of international law standards consistent with these objectives.