The Union Cabinet has given its approval for the Joint Interpretative Notes (JIN) on the Agreement between India and Bangladesh for the Promotion and Protection of Investments.
Decision in this regard was taken at the Union Cabinet meeting chaired by Prime Minister Narendra Modi in New Delhi.
Purpose of JIN
In general, JIN plays an important supplementary role in strengthening the investment treaty regime. Looking at increasing trend in Bilateral Investment Treaty (BIT) disputes, issuance of such statements is likely to have strong persuasive value for resolving disputes before arbitration tribunals. Moreover, such pro-active approach by states also can foster more predictable and coherent reading of treaty terms by tribunals.
Approval of JIN
The approval JIN by the Union Cabinet will impart clarity to the interpretation of the existing agreements between India and Bangladesh for the Promotion and Protection of Investments (BIPA). The JIN between India and Bangladesh includes interpretative notes to be jointly adopted for many clauses, including, the definition of investor, investment, exclusion of taxation measures, National Treatment (NT), Fair and Equitable Treatment (FET) and Most Favoured Nation (MFN) treatment, essential security interests, expropriation and Settlement of Disputes between an Investor and Contracting Party.