International Centre for Settlement of Investment Disputes

  • Foreign Direct Investment - Research Guide International Law

    Foreign Direct Investment

    Foreign Direct Investment (FDI) is a category of investment that reflects the objective of establishing a lasting interest by a resident enterprise in one economy in an enterprise that is resident in an economy other than that of the direct investor. The ICSID Convention is a multilateral treaty formulated by the Executive Directors of the International Bank for Reconstruction and Development (the World Bank). Although ICSID is considered to be the leading international arbitration institution devoted to investor-State arbitration, the Transatlantic Trade and Investment Partnership (TTIP) agreement between the European Union and the United States included an investor-state dispute settlement (ISDS) mechanism, whereby individual foreign investors may bring claims against host state governments for breach of the TTIP’s investment protection standards.

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