Brazil has never approved any BITs nor did it sign the ICSID Convention but it continued to receive significant amounts of foreign direct investment (FDI), consolidating its position as one of the world’s top recipients of FDI
International investment agreement (IIA) reform has made significant progress.
The investor-state arbitration landscape is shifting under our feet. The utility and legitimacy of traditional investor-state arbitration have come under fire, but states have not converged on a viable alternative.
‘IIA, which has a pro-investor bias, aims to protect only capital and not labour,’ said Saurabh Garg, the Joint Secretary in Indian Finance Ministry’s Department of Economic Affairs.
The proposed Multilateral Investment Court would give large corporations an exclusive justice system.
The treaty is an important attempt by two developing countries to move toward a new generation of BITs fully aligned with the evolution of international law.
While the debate on the treaty regulating business impact on human rights is likely to continue for a while longer, some recent developments in international investment law seem to be moving forward on international human rights law obligations for businesses
While India and Indonesia may have withdrawn from existing BITs, this does not necessarily leave foreign investors without any protection.
A clean break is needed to restore trust, but these stiff tests must be met.
Most have expired; partners unwilling to renew them under Finance Ministry’s model draft
Fresh investments by European companies in India and vice versa after April 1 won’t enjoy legal protection under any bilateral arrangement, as India has decided not to accede to requests by the European Union.
In the transition to its new approach to investor protection, India has sought to terminate its existing BITs with individual EU Members. Now the European Commission is pressuring India to extend those existing treaties.
Globalisation is at a dangerous crossroads. One path leads to regained policy-space for governments to address climate change, inequality and other pressing issues of our times. The other leads to more rights for corporations to bully decision-makers.
A successful conclusion of FIPA will provide a much-needed cover for Canadian investments in India and vice versa, and is expected to be an important catalyst in translating the announcements into reality.
Brussels has taken a decisive step toward establishing its contentious new investment court as a standard framework for appeals worldwide.
In reality, the EU’s plans are not realistic in the current international context, nor will they appease ISDS critics
India, along with Brazil, Argentina and some other nations, has rejected an informal attempt by the European Union and Canada to work towards a global investment agreement that would incorporate a contentious ISDS mechanism.
While India has been reshaping its arbitration laws and investment climate, the jury is still out on whether these measures will actually help create a more secure legal environment for investors.
Pakistan favours the resolution of trade disputes through established multilateral settlement systems instead of ad-hoc tribunals, an official said.