TerraLex Cross-Border Guide to Cross-Border Guide to Business Investment in Latin America & the Caribbean - NEW

The main types of legal entities that a foreign investor can set up in Panama are:

• Corporation (Sociedad Anónima): In Panama, corporations are the most common structure for foreign investors due to their flexibility and shareholder anonymity (although confidential beneficiary filings are required). They allow multiple share classes, preferred subscription rights, and limit liability to ownership. Corporations can engage in any lawful business.
• Limited Liability Company (Sociedad de Responsabilidad Limitada): Limited Liability Companies (LLCs) in Panama are mainly used by U.S. investors for favorable tax treatment. Unlike corporations, LLCs require at least two members (“quota holders”), and member identities are publicly registered. They are managed by “administrators” instead of a board of directors, and rules for holding quotas are stricter than those for corporate shares.
• Branches (Sucursales): Panama allows for the registration in Panama of foreign entities as local “branches”. Although registered in Panama, these are not “Panamanian legal entities” but extensions of the headquarters of the company registered in the foreign country.

Although both types of entities have their special regulation (i.e., Law 32 of 1927 regulates corporations and Law 4 of 2009 which regulates LLCs), Panama’s Commercial Code is of general application to all legal entities that engage in commercial activity in Panama.

In Panama, corporations and LLCs are formed through a public deed that must specify key details such as share capital and the appointment of at least three directors and officers or administrators, as the case may be. A Resident Agent—typically a Panamanian law firm or lawyer—must also be designated to perform mandatory due diligence (KYC), including identifying ultimate beneficial owners. Once executed, the deed is stamped for tax purposes and filed with the Public Registry, either online or physically. Registration typically takes 5–7 business days, though if an expedited fee is fee the registration process can take as little as 24 hours. The same applies for a branch registration, although this registration entails some additional requirements, like the notarized / apostilled headquarters’ board of directors resolution authorizing the registration of the branch in Panama as well as a copy of the latest balance sheet with a sworn statement as to the capital that will be directed towards business in Panama.

No.

Panama is a fully dollarized economy that has recognized the U.S. Dollar as legal tender since 1904, alongside its local currency, the Balboa, which exists only in coin form and is pegged 1:1 to the Dollar. The country does not issue paper currency and has no central bank. Because of this dollarization, Panama imposes no exchange controls or restrictions on converting Balboas to U.S. Dollars or transferring funds abroad. Capital, profits, and dividends can be freely repatriated without prior approval, and funds move in and out of the country without limitations. While anti-money laundering regulations apply, they do not amount to capital controls.

No.

Only with respect to public entities, state enterprises, mixed-capital companies, and private companies regulated by financial authorities (banks, insurance, capital markets, cooperatives), for which a minimum of 30% of their board members must be women.

In Panama, corporations and LLCs have the following general reporting requirements:

• Tax Filing: Corporations must submit their annual income tax return by March 31st, covering Panama-sourced income only (territorial tax system).
• Accounting Records: Under Law 52 of 2016, amended by Law 254 of 2021, companies must maintain accounting records and provide them to their Resident Agent annually by April 30, relative to the fiscal year ended on December 31st of the prior year.
• Resident Agent Affidavit: Resident Agents must file an affidavit listing the entities they represent by July 15 each year.

Panama does not require corporations to file public annual financial statements unless regulated (e.g., financial institutions), but accounting records must be kept and accessible.

Finally, Panama’s Anti-Money Laundering, Anti-Financing of Terrorism, and Anti-Proliferation of Weapons of Mass destruction (Law 23 of 2015), certain business activities (for example, real estate brokerage, or financial services, insurance and others) are subject to additional reporting requirements.

Panama’s main labour law is Cabinet Decree No. 252 of 1971, which enacted the Labour Code, as amended by Law 44 of August 12, 1995. Panamanian labour law is territorial in nature, meaning that it applies to all employment relationships within the national territory, regardless of the nationality of the employer or the employee. Consequently, any provision of labour services rendered in Panama shall be governed by the Panamanian Labour Code, compliance with which is overseen by the Ministry of Labour.

Social Security and Payroll Compliance:

Law 51 of 2005, recently reformed in March 2025, establishes that when a company is newly established and will begin hiring employees, it must first register as an employer with the Social Security Fund of Panama (CSS). The company will be assigned an employer identification number, which will be used in all dealings with the institution.

Once the company hires an employee, the latter must be registered with the Social Security Fund through a notice of entry (aviso de entrada). This is a mandatory requirement.

Employers must pay 13.25% of the employee’s monthly salary corresponding to the employer’s Social Security contribution, and 1.50% corresponding to the Educational Insurance tax.

However, under Law 462 of 2025, which amends the Organic Law of the Social Security Fund of Panama, an increase in the employer contribution is established, applied progressively as follows:

• 13.25% from the effective date of the law until February 28, 2027. This entered into force on March 18, 2025.
• 14.25% from March 1, 2027, until February 28, 2029.
• 15.25% beginning March 1, 2029, onward.

Internal Work Regulations:

Companies with ten (10) or more employees are legally required to have Internal Work Regulations, which govern employment relations between the employer and its workers. These regulations establish rules and procedures governing employer-employee relations, including matters related to hygiene, first aid, workplace safety, working hours, compensation methods, disciplinary sanctions, etc.

Entitlements:

Regardless of the form in which the employment relationship terminates—dismissal, resignation, mutual agreement, or death of the employer or employee—the employer must pay entitlements, which are non-waivable and non-negotiable.

These include:

• Seniority Premium
• Vacation
• Thirteenth Month

Occupational Risks

Employers must also pay a contribution for Occupational Risk Insurance, which ranges from 0.56% to 5.67% of the monthly salary. However, depending on the nature of the employee’s job, the percentage may be higher, considering the accident rate associated with the activity.

Termination of the Employment Relationship

Pursuant to Panamanian labour legislation, an individual employment relationship may terminate, among other causes, due to dismissal, mutual consent, resignation, death of the employee or employer, among others.

Employment relationships of indefinite duration that exceed two (2) years may not be terminated through dismissal unless there is just cause. In the Republic of Panama, the parties may not invoke causes for dismissal other than those contemplated by law.

An employee hired under an indefinite-term contract who is dismissed without just cause is entitled to claim severance equivalent to 3.4 weeks of salary per year worked or fraction thereof during the first ten years; and One (1) week of salary per year from the eleventh year onward.

There is no minimum or maximum limit on severance for unjustified dismissal. The amount payable is determined strictly according to the law. Employees who have not completed two (2) continuous years of work may be dismissed without cause; however, the employer must provide the employee with:

• One-month prior notice or payment in lieu thereof, and
• Severance compensation in accordance with Article 225.

Overtime

Time worked beyond the legal daily or weekly limits constitutes overtime, and must be paid with the following surcharges:

• Daytime Overtime: 25% surcharge.
• Nighttime Overtime or extension of a mixed shift that began during daytime hours: 50% surcharge.
• Overtime extending a night shift or a mixed shift that began at night: 75% surcharge.

If a daytime shift includes a period of at least three nighttime hours, it automatically becomes a night shift, and therefore nighttime overtime rules apply. In Panama, unless special legislation applies, overtime is restricted to:

• Maximum 3 hours per day, and
• Maximum 9 hours per week.

Legal Limit on Hiring Foreign Employees

As a general rule, every employer must maintain Panamanian workers or foreigners with Panamanian spouses or more than ten years of residence in a proportion not less than 90% of the workforce of ordinary workers and 90% of the total payroll. However, employers may hire specialized or technical foreign workers up to 15% of their workforce and payroll.

This means that for every ten (10) Panamanians, the company may employ one (1) foreign worker in general and such foreign worker’s wages must not exceed 10% of the total payroll.

Employers seeking to hire foreign employees must obtain a Work Permit from the Ministry of Labour, pending verification that the company meets the legally required national percentages.

Finally, please note that certain professions are subject to nationality restrictions and may only be performed by Panamanian nationals.

Under Panamanian law, foreign nationals who intend to work in the country must comply with two distinct legal procedures prior to engaging in any employment activity:

• Residence Permit: This authorization allows the foreign national to reside legally in Panama and is issued by the National Immigration Authority. Obtaining legal residency is a prerequisite for any subsequent work authorization.
• Work Permit: This authorization enables the individual to work legally in Panama and is granted by the Ministry of Labour.

The issuance of a work permit is linked upon the applicant’s valid immigration status and subject to compliance with labour regulations, including the limitations on the employment of foreign personnel established under the Panamanian Labour Code and other special laws.

Notwithstanding the aforementioned limits on foreign labour headcount and wages, certain work permits allow foreign nationals to be considered as Panamanian labour for quota purposes, including:

• Indefinite Work Permit for having 10 years of residence in the country.
• Work Permit for Foreigners Married to a Panamanian National.
• Indefinite Work Permit under the Panama–Italy Agreement.
• Indefinite Work Permit for Friendly Nations.
• Work Permit for Foreigners with a Panamanian Child.

Additionally, special regimes establish exceptions to the general rules regarding the hiring of foreign personnel, including:

• Work Permit for Micro or Small Employers (MIPE).
• Work Permit for Executives of International Companies Whose Functions Take Effect Abroad.
• Work Permit for Executives of the Colon Free Zone.
• Work Permits under the City of Knowledge Foundation.
• Work Permit for Temporary Technicians.
• SEM and EMMA Visas.

Foreign nationals who wish to invest in Panama may apply for specific immigration categories including:

Permanent Residence Permit under the Friendly Nations Program

To qualify, the applicant must:

• Be a citizen of one of the countries included in the official “Friendly Nations” list published by the National Immigration Authority.
• Make a minimum investment of USD 200,000, either through the purchase of real estate or by placing a fixed-term deposit in a Panamanian bank.

Permanent Residence Permit under the Qualified Investor Program

To qualify, the applicant must invest in one of the following modalities:

• USD 300,000 in real estate.
• USD 500,000 in securities listed on the Panama Stock Exchange.
• USD 750,000 in a fixed-term deposit in a Panamanian bank.

Both categories allow the applicant to request a work permit, without the need for a job offer, provided fulfilling the general requirements and compliance with the Labour Code and applicable regulations.

Generally, Panama does not impose restrictions on foreign ownership of land, except property near Panama’s borders which is established by Article 291 of the Panamanian Constitution. This provision expressly prohibits foreign individuals and entities from owning titled land located within ten kilometres of the country’s borders with Costa Rica and Colombia. The scope of the restriction is broad. It covers not only foreign individuals but also Panamanian companies that are ultimately controlled by foreign persons. Attempts to circumvent the rule through local entities or joint ventures do not eliminate the legal risk, as the prohibition focuses on ultimate ownership and control.

Panama has entered into more than 20 free trade agreements with the U.S., Mexico, EU, Singapore, and Central American bloc (i.e., Guatemala, Honduras). Panama’s WTO membership ensures non-discrimination regarding trade matters. Multilaterals includes Pacific Alliance associate status. Panama has also entered into agreements to avoid double taxation with Barbados, Korea, UAE, Ireland, Israel, Italy, Luxembourg, Netherlands, Portugal, Qatar, UK, Spain, France and Vietnam. These agreements reduce tariffs, protect investments made by nationals of the treaty counterparty, enable capital repatriation and establish best practice standards regarding IP and labour protection.

Panama has established itself as a premier destination for foreign direct investment (FDI) by codifying investor protections and industry-specific incentives into a robust legal framework. Here is a more elaborate breakdown of the laws and economic conditions you mentioned.

A. Legal Stability and Sector-Specific Incentives

Panama uses specific "Stability Laws" to reassure large-scale investors that the "rules of the game" won't change after they have committed capital.

Law 54 of 1998 (Legal Stability of Investments)

This is the cornerstone of Panama's investment protection. It guarantees that for a period of 10 years, the legal, tax, labour, and customs framework in place at the time of the investment will remain unchanged for the investor.

• Requirement: A minimum investment of $2 million.
• Sectors: It covers 14 strategic areas including tourism, industrial manufacturing, mining, telecommunications, energy, and ports.
• Protection: Even if the government passes new taxes or changes labour codes, the registered company is "grandfathered" into the old rules.

SEM and EMMA Laws (Regional Hubs)

Panama leverages its geography to act as a corporate and manufacturing hub for the Americas.

• SEM (Law 41 of 2007): Designed for Multinational Headquarters. It provides 0% Corporate Income Tax on services rendered to entities outside of Panama and exempts the 7% Value Added Tax (ITBMS). It also offers streamlined visas for foreign executives.
• EMMA (Law 159 of 2020): An extension of the SEM model but for Manufacturing and Assembly. It offers a reduced 5% Income Tax (ISR) and grants total exemptions on import duties for machinery and raw materials used in the manufacturing process.

Law 76 of 2009 (Industrial Promotion)

This law targets the domestic industrial sector to boost competitiveness.

• Customs Benefits: It caps import duties at a flat 3% for raw materials and capital goods.
• Tax Credits: It allows for a 100% deduction of ITBMS on industrial inputs and provides a "Certificate of Industrial Development" (CFI) which acts as a tax credit for up to 50% of reinvested profits.

B. Visas, Entry, and Global Integration

Panama makes it relatively easy for investors to gain residency and avoid double taxation.

Investor Visas

Panama offers several paths to residency, most notably the Qualified Investor Visa:

• Real Estate: Currently requires a $300,000 investment.
• Banking: A $750,000 fixed-term deposit in a Panamanian bank.
• Future Changes: Note that the threshold for real estate investment is scheduled to rise to $500,000 after 2026 to align with evolving economic targets.

Tax Treaties

To prevent "tax leakage," Panama has signed Double Taxation Agreements (DTAs) with over 15 jurisdictions, including the United Kingdom, Mexico, Spain, and France. While Panama does not have a formal DTA with the US, it has a robust Tax Information Exchange Agreement (TIEA) and specific trade protections.

C. Macroeconomic Foundations

The "Panamanian Miracle" is built on a foundation of monetary and social stability:

• Dollarization: Panama has used the US Dollar as its legal tender since 1904. This eliminates exchange rate risk and prevents the central bank from "printing" money, resulting in historically low inflation.
• Labor Market: The country maintains competitive unemployment rates and a workforce increasingly trained in logistics and technical services.
• FDI Equality: Under Panamanian law, foreign investors have the same rights and duties as national investors. There are no restrictions on the 100% foreign ownership of businesses (with very few exceptions like retail and certain professional services).

Corporate Income Taxes

Resident and non-resident companies are generally subject to tax only on their Panama source income. Any income derived from sources outside of Panama are not subject to income taxes in Panama. Terms of any relevant treaty to avoid double taxation may apply if a tax residency certificate is provided to Panamanian tax authorities.

The standard corporate income tax rate is 25%. Companies in which the State has an equity interest exceeding 40% are generally subject to income tax at the rate of 30%. Companies whose taxable income exceeds US$1.5MM are generally subject to the greater tax calculated by applying the standard corporate income tax rate to net income, or tax calculated by applying a rate of 4.67% to gross income (CAIR). The authorities have discretion to grant exemption from CAIR for up to three years.

Branches of foreign companies are subject to an additional branch profits tax of 10% (deemed dividend tax) over their after-tax profits. Taxable income must generally include any taxable capital gains (i.e. those from business, industry, trade or agricultural activities), subject to alternative rates for certain gains and possible exemptions.

Capital gains on the sale of securities are generally taxed at a rate of 10% of the profit. However, at the time of the sale, the purchaser must withhold 5% of the gross and remit such sum to the Panamanian tax authorities. If the withheld sum is lower than 10% of the profit, the seller may elect the withheld sum to be the final liability. If the withheld sum is greater than the withheld sum, then the seller may request a tax credit.

Capital gains on the transfer of real estate are calculated by a sum equalling 3% of the higher value between the sale price and the registered value of the property.

Other capital gains which are not part of the taxpayer’s regular business activities are generally subject to tax at the rate of 10%.

Unutilized losses may generally be carried forward for five consecutive years, subject to a maximum of 20% of total annual loss. Carried forward losses cannot offset more than 50% of taxable income. Losses cannot be carried back.

Group tax consolidation is not available in Panama; consequently, losses cannot be offset against the profits of another company in the same business group.

The fiscal year is generally the same as the calendar year. However, companies may request that a different 12-month period apply. Tax returns are generally due for filing within three months of the end of the fiscal year. Companies may request an extended filing date for one month.

A corporate income tax advance for the following year is calculated based on the current year, being payable in advance for following year in three instalments on 30 June, 30 September and 31 December. Any remaining corporate income tax due is payable at the corporate tax return, and any excess payments are applied against future liabilities or refunded.

Withholding Taxes on Payments Abroad

The rates of withholding tax on the following payments made abroad to non-resident companies are generally:

Type of payment..............Rate

Dividends...............................5%/10%/20%

Interest...................................Effective rate 12.5%

Royalties................................Effective rate 12.5%

For payments made to recipients in countries with which Panama has a double tax treaty, the rates of withholding tax may be reduced under the terms of the treaty.

Indirect Taxes

Transfer tax on movable goods and services (ITBMS) is generally levied on the supply of goods and services in Panama, and the importation of goods.

The standard rate is 7%. A 10% rate applies to public establishment accommodation services, and alcoholic beverages, and a 15% rate applies to tobacco products. Certain supplies are exempt, including exports, foodstuffs, medicines, and certain financial services.

The registration threshold for businesses providing movable goods or services is an average annual monthly income exceeding US$3,000, and average annual gross income exceeding US$36,000.

Registered businesses can generally recover the tax with which they themselves are charged on their purchases of goods and services, subject to conditions and possible exceptions.

Other Taxes

Operations notice tax or license tax.

An annual operations notice tax is generally levied on businesses at the rate of 2% of capital, subject to a minimum of US$100 and a maximum of US$60,000. Businesses are exempt from this tax if their paid-in capital is less than US$10,000. For businesses established in a duty free or tax-free zone, the rate is 0.5% of capital, subject to a minimum of US$100 and a maximum of US$50,000.

Minimum dividend tax

Companies which distribute as dividends less than 40% of their post-tax earnings are charged a tax of 10% of the shortfall. The rate of dividend tax is increased to 20% for bearer shares.

Panama's antitrust framework, under Law 45/2007 (Competition Defence Law), prohibits monopolies, tying agreements, reciprocal dealings, and abusive practices by any entity affecting the market, including foreign investors forming legal entities like corporations or branches. There is no requirement to register with the National Competition Authority (ACODECO) for mergers or acquisitions. However, when the resulting entity exceeds one of the commonly used competition indexes (such as HHI), it is recommended to request approval.

All norms in Panama are applied the same to local or foreign investors.

Panama has a modern, arbitration-friendly legal framework that recognizes and strongly enforces alternative dispute resolution (ADR) mechanisms, including mediation and arbitration, both domestic and international. Panama expressly recognizes arbitration, mediation, and conciliation as valid ADR methods.

The governing statutes are Decree Law 5 of 1999 for mediation and conciliation and Law 131 of 2013, which adopts the core principles of the UNCITRAL Model Law on International Commercial Arbitration.

Domestic awards issued in Panama are enforceable through a streamlined executive procedure before Civil Circuit Courts and International awards through the exequatur (recognition) proceeding before the Fourth Chamber of the Supreme Court.

Also, under the Panamanian Code of Civil Procedure, conciliation is recognized as a valid procedural mechanism and courts may encourage parties to engage in conciliation at various stages of the proceedings, and any agreement reached through this process is formalized and granted the same enforceability as a judicial decision.

Panama has enacted an Investment Stability Law (Law No. 54 of 1998), which protects foreign and domestic investors by guaranteeing legal, tax, customs, municipal, and labour conditions over a 10-year period for a minimum investment of US$2 million. This law ensures that once the investment has been registered, applicable rules will remain stable, protecting investors from adverse changes that could affect the amortization of their investments. Additionally, Panama offers clear legal frameworks for trusts and asset protection, strengthening investor confidence and privacy.

Panama's investment climate in 2025 is favourable and resilient, driven by a stable and dollarized economy, low inflation, and a growing GDP expected to increase by around 4%. Key sectors attracting investors include financial services, logistics, tourism, real estate, and technology. The government's pro-investment policies, including investor visas and tax incentives, alongside transparent legal and regulatory systems, make Panama a leading investment destination in Latin America, supporting both conservative and innovative business strategies.

Panama has successfully transitioned from a mere transit point to a diversified global hub. For foreign investors, the country offers a unique "plug-and-play" environment where legal incentives meet high-growth industrial sectors.

Here is an elaborate look at the most viable investment opportunities and the legal structures that support them.

A. Financial Services & Banking

Panama is the most significant financial center in Latin America, hosting over 80 international and local banks.

• Banking Licenses: Investors can apply for a General License (permitting local and international operations) which requires a minimum of $10 million in paid-up capital. An International License (offshore only) requires $3 million.
• Insurance & Reinsurance: Under Law 12 of 2012, insurance companies require a minimum capital of $5 million, while reinsurance firms require $1 million.
• Fintech: With a high internet penetration and a dollarized economy, there is a surge in digital wallets, blockchain integration, and cross-border payment platforms.

B. Logistics, Maritime & Special Zones

Panama leverages the Canal to handle roughly 5% of world trade, creating a "Logistics Cluster" that is unrivalled in the region.

Special Economic Zones

• Colón Free Trade Zone (ZLC): The second-largest free port in the world. It offers 0% tax on income derived from export activities and total exemption from import/re-export duties.
• Panama Pacifico: A mixed-use "aerotropolis" on a former US Air Force base. It focuses on high-tech manufacturing, back-office services, and aviation. It offers special labour regulations (fixed rates for overtime/holidays) and a "one-stop shop" for all government permits.

C. Real Estate and Urban Development

Panama’s real estate market is driven by multinational demand and "Golden Visa" programs.

• Yields: Investors often see gross rental yields between 5.5% and 9%, particularly in high-demand areas like Costa del Este, Avenida Balboa, and Boquete (for retirees).
• Short-Term Rentals: While strictly regulated in the city (minimum 45 days in most zones), specific "condo-hotels" are licensed for Airbnb-style short-term stays, yielding higher returns from the growing medical and business tourism sectors.

D. Emerging High-Growth Sectors (2026 Outlook)

As the global economy shifts toward sustainability and technology, Panama has updated its roadmap:

Sector Opportunity Highlights

Key Drivers

Renewable Energy: Solar, wind, and green hydrogen auctions starting in 2026 National Energy Plan 2050 (goal of 70% renewables). Agrotechnology: High-value exports like Geisha coffee and organic cacao. Fertile highlands in Chiriquí and export incentives.

Technology: Data centers and submarine fiber-optic cable hubs, 10+ fiber-optic cables landing in Panama.

Tourism: Eco-tourism and "Regenerative" travel, $300M+ government investment in tourism infrastructure.

E. Strategic Incentives: SEM & EMMA

To attract the "brains" and "hands" of global corporations, Panama uses two primary laws:

• SEM Law (41/2007): For Multinational Headquarters. Provides a reduced 5% income tax and permanent residency for executives.
• EMMA Law (159/2020): For Multinational Manufacturing. It mirrors SEM benefits but adds customs exemptions for all equipment and raw materials used in assembly or light manufacturing.

The Panama Canal handles 5% of global trade with over 14,000 annual ship transits, supported by modernized expansions for Neo-Panamax vessels since 2016. Key infrastructure assets include Tocumen International Airport as a regional hub, ports like Balboa, highways, railways, and free trade zones such as Colón (second largest worldwide) and Panama Pacifico, plus submarine fibre optic cables for high-speed internet and data centres. These enable efficient intermodal connectivity, reducing logistics costs and positioning Panama as Latin America's logistics hub, directly boosting foreign direct investment (FDI) by facilitating trade, manufacturing, and digital operations while minimizing geopolitical risk.

Ongoing projects like dry ports, urban mobility upgrades, and digital government platforms further enhance reliability, attracting sectors like logistics and tech. For foreign investors, this infrastructure cuts time/costs for imports/exports, supports special economic zones with tax exemptions, and ensures economic stability via Canal revenues funding national budgets, though challenges like public debt (58.43% of GDP in 2021) require monitoring.

Additionally, the Panama Canal Authority has announced three key infrastructure initiatives: an oil pipeline that will run parallel to the Canal, two new ports (one on each coast) and a new reservoir to be built on Rio Indio.

Key risks include vulnerability to external shocks like global trade slowdowns affecting Canal traffic (handling 5% world trade), potential credit rating downgrades from fiscal deficits and public debt, regulatory changes in migration/fiscal/environmental areas, and sector-specific issues such as mining shutdowns or land title encumbrances. Operational challenges encompass licensing delays, AML compliance, and supply chain disruptions in free zones.

Mitigation involves pre-investment due diligence with local counsel for regulatory mapping and title verification; phased investments tied to permits/milestones; diversification across sectors like logistics and real estate; robust KYC/AML programs; insurance for operational risks; and monitoring via ProPanamá for policy updates. Engaging in special regimes (SEM, free zones) leverages tax/legal stability, while BITs/FTAs offer ISDS protections.