Investment treaties give qualifying foreign investors direct rights against host states, enforceable by arbitration.

Coverage. An investor of one state making a covered investment in another, with the definitions of both determining access. Corporate structuring at the time of investment — not after a dispute arises — determines eligibility.

Standards of protection. Fair and equitable treatment, including protection of legitimate expectations and due process; full protection and security; national and most favored nation treatment; protection against unlawful expropriation, including indirect expropriation through regulation; and free transfer of funds.

Umbrella clauses elevating breaches of contract with the state to treaty breaches, where present.

Procedure. A cooling-off period, then arbitration under an institutional or ad hoc framework, with awards enforceable under specialized or general conventions.

Denial of benefits clauses allowing states to exclude shell companies without substantial business activity.

Reform. Many states have terminated or renegotiated treaties, and the availability of protection cannot be assumed from historical practice.

Practical relevance. For a business investing in a jurisdiction where the local courts are a concern, treaty coverage is a structuring consideration at the time of investment, and it is generally unavailable retroactively.