The Union Cabinet approved signing of Joint Interpretative Declaration (JID) between India and Colombia regarding existing Agreement for Promotion and Protection of Investments. The agreement was signed between them signed in November 2009.
Key Features of JID
The JID will help to impart clarity on interpretation of existing Agreement as it includes interpretative notes to be jointly adopted for many clauses. It includes definition of investor, investment, Fair and Equitable Treatment (FET), Most Favoured Nation (MFN) treatment, National Treatment (NT), expropriation, Investor-State Dispute Settlement provision and Denial of Benefits.
Joint Interpretative Declarations/Statements
JIDs in general play important supplementary role in strengthening investment treaty regime. Issuance of such statements will have strong persuasive value before arbitration tribunals as Bilateral Investment Treaty (BIT) disputes are increasing. Such pro-active approach by partners can foster more predictable and coherent reading of treaty terms by arbitration tribunals.