India Poised to Finalize New Investment Agreements with Australia and Canada
NEW DELHI: India is nearing the final approval of a new model bilateral investment treaty (BIT) aimed at addressing concerns from various countries and streamlining investment negotiations. This treaty is expected to enhance investor protection and will be rolled out alongside trade agreements with nations such as Australia and Canada, as well as with partners like the UK and the European Union. A significant change in the new BIT is the reduction of the period to seek international arbitration from five years to one year, contingent on the exhaustion of domestic remedies.
The finance ministry has submitted the draft note for approval, which is anticipated to be finalized soon. Key provisions will maintain India’s sovereign rights over taxation and domestic courts, with no tax-related clauses included, as these are considered a parliamentary prerogative. The Union cabinet is expected to approve the revised model BIT within the next few weeks, replacing the contentious version from 2015 that was largely rejected by other countries.
Since 2018, only six countries have entered into BITs with India, including Belarus, Kyrgyzstan, Brazil, UAE, Uzbekistan, and Israel. India has made concessions in negotiations with the UAE and Israel but has not offered similar exceptions to the UK, EU, or the European Free Trade Association. Currently, India is negotiating BITs with four countries, including Canada and the UK, under the new framework. Commerce and Industry Minister Piyush Goyal confirmed that the ongoing negotiations for a full free trade agreement with Australia will include an investment pact.
Observer Voice is the one stop site for National, International news, Sports, Editor’s Choice, Art/culture contents, Quotes and much more. We also cover historical contents. Historical contents includes World History, Indian History, and what happened today. The website also covers Entertainment across the India and World.
