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 between the two countries.
The JIN includes interpretative notes to be jointly adopted for many clauses, including, the definition of investor and investment, exclusion of taxation measures, Fair and Equitable Treatment (FET), National Treatment (NT) and Most Favoured Nation (MFN) treatment, expropriation, essential security interests and settlement of disputes between an investor and a contracting party.
Joint Interpretative Statements play an important supplementary role in strengthening the investment treaty regime.
With increasing Bilateral Investment Treaty (BIT) disputes, issuance of such statements was likely to have strong persuasive value before tribunals.
The JIN would impart clarity to the interpretation of the existing agreement between India and Bangladesh for the Promotion and Protection of Investments (BIPA).
Such pro-active approach by States can foster a more predictable and coherent reading of treaty terms by arbitration tribunals.