A Bilateral Investment Treaty (BIT) is an agreement between two countries that aims to promote and protect investments made by investors from one country in the other. These treaties provide legal assurances, such as protection against expropriation and fair treatment, to encourage foreign investment and foster economic cooperation. BITs often include provisions for dispute resolution, allowing investors to seek arbitration if they believe their rights have been violated. By establishing a stable and predictable environment for investments, BITs help enhance economic ties and encourage growth between the two nations involved.