Prime Minister’s Office (PMO) has asked the Ministry of Commerce to examine the model text of Bilateral Investment Treaty (BIT) and suggest improvements in it to increase ease of doing business. Sources gave this information. This exercise is important because only seven countries have ratified the existing model text treaty. Most developed countries have expressed their objections to the model code with respect to provisions such as dispute resolution. These investment treaties help in protecting and promoting investments in each other’s countries. These agreements assume significance as India has already lost two international arbitration cases against British telecom company Vodafone and Cairn Energy Plc over retrospective tax.
Opinion will also be taken from third party
Sources said there will be an internal discussion on the model code of the treaty with experts and lawyers in the commerce ministry on Monday. “A presentation will be given at the meeting,” he said. We are discussing this issue internally. The PMO is looking into this and has asked the Commerce Ministry to seek third party opinion on the model code.” Although BIT is a subject matter of the Finance Ministry, the Commerce Ministry is in a position to seek third party views and give suggestions to higher authorities. Will try.
Aim to become the third largest economy
The treaty marks an important point between India and the UK, as both countries are negotiating free trade agreements and BITs. According to experts, the group of four-European countries EFTA (Iceland, Liechtenstein, Norway and Switzerland) will also demand a BIT. Economic think tank GTRI (Global Trade Research Initiative) said that as India aims to become the third largest economy, it is important to align its treaties with global investment practices.
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