What does BIPPA mean in INVESTMENTS

A Bilateral Investment Promotion and Protection Agreement (BIMPA) is an agreement between two countries for the promotion and protection of investments that are made by investors from either of the countries in the other. It is designed to encourage, promote and protect investments made in each other's economies by providing a framework of rules and regulations to govern these investments.

A BIPPA promotes investment by providing certainty as to how an investor's property will be treated if it were to invest in another country. Through the binding legal agreements set out in a BIPPA, foreign investors have some assurance that their investments will not be subject to arbitrary or discriminatory measures which would limit their economic returns on their investment, such as expropriation without compensation or nationalization policies. In addition, certain clauses included in most BITs will ensure fair treatment for foreign investors upon any disputes with host governments.

A BIPPA provides numerous protections for foreign investors, including guarantees against expropriation without compensation, prohibitions on performance requirements such as local content or technology transfer requirements, guarantees of access to justice systems, contractual dispute resolution mechanisms outside the jurisdiction of national courts, provisions granting non-discriminatory treatment with respect to nationals investing in similar circumstances and so forth.

Generally speaking, both signatories benefit from a BIPPA as it encourages increased investment from one country into another. This can lead to job creation across both jurisdictions as well as increased economic activity due to more funds being available for development projects or businesses operations. As well as this benefit being shared between signatories it may also extend beyond them if there are third party agreements that allow other interested parties access too.

A Bilateral Investment Promotion & Protection Agreement generally applies both retroactively - meaning already existing investments -and prospectively - meaning newly created ones - as long as they meet all criteria set forth within each deal itself or within related laws or regulations passed after its signing.