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U.S. Department of State

Diplomacy in Action

Letter to Secretary Clinton Regarding the Model Bilateral Investment Treaty

October 1, 2009


The Honorable Hillary Rodham Clinton
Secretary of State
2201 C Street N.W.
Washington, DC 20520

Dear Madam Secretary:

The Advisory Committee on International Economic Policy submits this report on the Model Bilateral Investment Treaty in response to the request of the Department of State and the Office of the United States Trade Representative to establish a Subcommittee on Investment to review the Model BIT. The State Department and USTR asked that this Subcommittee on Investment devote attention, in particular, to three topics: (a) dispute settlement provisions; (b) state-owned enterprises; and (c) financial services issues. We believe that the attached Report of our Subcommittee on Investment is responsive to these questions and in addition addresses a number of other issues surrounding the Model BIT. We respectfully submit the Report for your consideration.

Yours truly,


Theodore W. Kassinger   Alan Larson   Thea Lee
Chairman   Co-Chair   Co-Chair
Advisory Committee on International Economic Policy   Subcommittee on Investment   Subcommittee on Investment


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