Investment arbitration is arbitration in investment disputes between foreign investors and the host state which finds place within the framework of a either a bilateral investment treaty (BIT) between the host state and the investor's state or a multilateral treaty, such as the NAFTA or the Energy Charter Treaty. Investment arbitration is arbitration in investment disputes between foreign investors and the host state which finds place within the framework of a either a bilateral investment treaty (BIT) between the host state and the investor's state or a multilateral treaty, such as the NAFTA or the Energy Charter Treaty.