An "umbrella clause" in a concession agreement allows an investor to bring claims not covered under a bilateral investment treaty within the coverage of the bilateral investment treaty.

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An umbrella clause is a provision often included in investment agreements, such as concession agreements, that elevate contractual obligations to the level of an international treaty. This allows an investor to bring claims arising from the breach of the concession agreement under the protection of a bilateral investment treaty (BIT), even if the dispute does not directly relate to an alleged breach of the BIT. As a result, it broadens the scope of protection for foreign investors and makes it easier for them to bring claims against host states.

An "Umbrella Clause" in a Concession Agreement Allows an Investor