The Role of Bilateral Investment Treties in Global Trade: Case Study of Iraq

Abstract

In this paper, several international investment treaties have been researched, in addition to other resources from organizations such as the (OECD) and the (UNCTAD). Through the comments, suggestions and recommendations that have been presents for investment institution (mostly the National Investment Commission in Baghdad and the Ministry of Investment in KRG) to draft a sound Model Bilateral Investment Treaties BITs which will express the issues that any government has to consider and define clearly the objectives and intent on investment agreements, and which will protect the government interests in the future. I will come over the dispute resolution clause in the BITs and their role in economic development and the interaction between increased protection and the rate of capital accumulation because, in the absence of capital flows, investment is determined by the amount of domestic savings out of total income. This will drive me later to talk about the benefits of expanded FDI flows under globalization and its effect on international trade the World Trade Organization WTO.
Expanded FDI flows under globalization, which is encouraged by BITs, could have benefits to international trade but under few restrictions which I came to explain in this paper which includes Low value-added, Weak linkages, Erosion of local capacity, Merger and acquisition, Environmental damage and displacement.