Bilateral Investment Treaty

Finance Minister Nirmala Sitharaman on Saturday said that going forward the bilateral investment treaties should capture national interest in relation to regulatory powers and serve as a guide to arbitrators in resolving disputes. Speaking at the inauguration of the first PG Certificate Course on International Commercial & Investment Treaty Arbitration in New Delhi, Sitharaman said issues related to Bilateral Investment Treaty (BIT) are unique to the sovereign and hence BIT should be negotiated stand-alone rather than as a part of FTA agreement. Stating that arbitrators have often ignored the judicial decisions of the host country, Sitharaman said an investment treaty must not only provide better regulatory powers to the nations but must also serve as guidance to arbitrators to restore faith in arbitration. "I strongly believe, moving forward, the framework of investment treaties should capture national interests in relation to regulatory powers and strengthen guidance for ...

Demands of certain developed countries from India to negotiate 'investment protection' elements under an FTA is inappropriate as negotiating the matter as part of a separate chapter under the trade pact could have larger and detrimental implications, source said. Legally speaking, they said, the investment protection element provides a wide range of obligations and commitments bestowed upon foreign investors, which are expansive in nature. "Recently, a lot has been heard about countries that are desiring India to negotiate 'investment protection' elements vis-a-vis investment chapter as part of the free trade agreement (FTA). However, this is incorrect," one of the sources said. For instance, the European Union (EU) has been negotiating a separate investment protection agreement or treaty with India, and not as part of the India-EU free trade agreement. "Having 'investment protection' as a chapter of a FTA could have larger and detrimental implications even on the trade agreements'

India's revised approach to bilateral trade now includes a three-year local remedy clause in the UAE pact which could impact future investment

India must reform its judicial system to enable faster dispute resolutions. This will help improve overall investor confidence and ease of doing business

The government on Monday said bilateral investment treaty (BIT) signed between India and the UAE has been enforced from August 31 this year. The BIT was signed on February 13 this year at Abu Dhabi, UAE, and it entered into force with effect from August 31, 2024, the finance ministry said. Enforcement of this pact with the UAE gives continuity of investment protection to investors of both the countries, as the earlier Bilateral Investment Promotion and Protection Agreement (BIPPA) between India and the UAE signed in December 2013 expired on September 12 this year. As per the treaty, the UAE investors must have to exhaust domestic remedies (for at least three years) before commencing arbitration under the BIT. The time period earlier was five years. The other key features of the pact included provisions of closed asset-based definition of investment with coverage of portfolio investment; treatment of investment with obligation for no denial of justice, no fundamental breach of due .

The Prime Minister's Office (PMO) has asked the commerce ministry to examine the model text of the bilateral investment treaty (BIT) and suggest modifications to further improve the ease of doing business, according to sources. The exercise assumes significance as only seven countries have accepted the existing model text treaty, and most of the developed nations have expressed their reservations on the text with regard to provisions like the resolution of disputes. These investment treaties help in protecting and promoting investments in each other's countries. These pacts are important as India has earlier lost two international arbitration cases against British telecom giant Vodafone and Cairn Energy plc of the UK over the retrospective levy of taxes. Sources said an internal discussion will be held on the model text of the treaty on Monday in the commerce ministry with experts and lawyers. "There will be a presentation in the meeting. We are having an internal discussion on th

India and the UAE on Tuesday signed the Bilateral Investment Treaty (BIT), which will be a key enabler for further promoting investments in both countries. Prime Minister Narendra Modi and UAE's President Sheikh Mohamed bin Zayed Al Nahyan leaders witnessed the exchange of the BIT. "This agreement will be a key enabler for further promoting investments in both countries," India's Ministry of External Affairs said in a statement. India has signed both a Bilateral Investment Treaty and a Comprehensive Economic Partnership Agreement with the UAE, the statement added. Earlier in the month, the Union Cabinet in New Delhi gave its approval for signing and ratification of BIT with the UAE. The BIT is aimed at improving the confidence of investors, especially big investors, resulting in a rise in foreign investments and overseas direct investment (ODI) opportunities. It is also likely to have a positive impact on employment generation. Besides increasing investments in India, the BIT wit

India must align its treaties with best global practices

Issues pertaining to the proposed bilateral investment treaty being negotiated between India and the UK along with a free trade agreement will figure prominently during the visit of a high-level team from Britain here, an official said. UK Secretary of State for Business and Trade Kemi Badenoch and Director General for Trade Negotiations at the Department for Business and Trade (DBT) Amanda Brooks are visiting India this week. Besides participating in the G20 Trade and Investment Ministerial Meeting in Jaipur on August 24-25, the UK minister will hold bilateral talks with Commerce and Industry Minister Piyush Goyal on August 26 here and review the progress of talks on the free trade agreement. The UK minister is also expected to meet Finance Minister Nirmala Sitharaman on various issues, including the bilateral investment treaty. Brooks would also meet senior officials of the department of economic affairs in the finance ministry, which is leading the negotiations on the investment

The Delhi High Court has set aside an arbitration award that asked Antrix to pay $562 mn to Devas

Several law firms representing interests of companies abroad hope this will happen soon

Payouts on account of BITs are like insurance payments that undergird foreign investment

The government sticking to its stand that bilateral investment treaties cannot override a nation's sovereign right to tax

India does not recognise the jurisdiction of any foreign court in a commercial dispute that questions the state's sovereign power to intervene

After unilaterally terminating pacts in 2016, India has pushed for individual deals based on Bilateral Investment Treaty

With the US going into its Presidential elections in November, both governments are being cautious

This has led to negotiations slowing down and signing of BITs, with India's major global partners taking more time than previously anticipated

First of new BITs likely with the US, Canada or Cambodia

Senior govt officials said that such agreement will ensure that states stick to the commitments that India guarantees foreign companies under Bilateral Investment Treaty