PMO calls for improvement in text of bilateral funding treaties
PMO calls for improvement in text of bilateral funding treaties The Economic Times
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PMO Calls for Improvement in Text of Bilateral Funding Treaties
The Prime Minister’s Office (PMO) has instructed the commerce and industry ministry to review the model text of the bilateral investment treaty (BIT) and propose changes to enhance India’s position as an investor-friendly nation.
Examining the Model BIT Text
The ministry plans to meet with experts on Monday to discuss issues related to investor-state dispute settlement. India insists on the exhaustion of local remedies before an investor can take the state to court for a dispute, a stance that many countries oppose.
- The purpose of the meeting is to gather third-party views on the model BIT text, as not many countries have agreed to sign them.
- Investment facilitation is part of the negotiations on free trade pact agreements.
Controversial Points in the Model BIT Text
According to the model BIT text, investors are required to exhaust local solutions for at least five years before arbitration. This provision aims to prevent arbitrators from having expanded jurisdiction, but it is a point of contention.
India’s Amendments to the Model Investment Treaty
In 2015, India amended the text of the model investment treaty to explicitly exclude taxation measures or the issuance of compulsory licenses under intellectual property rights laws. The model treaty also ensures fair and equitable treatment to investments on a post-establishment basis through reciprocal provisions like national treatment, most favored nation treatment, and mechanisms for dispute resolution.
Importance of Bilateral Funding Treaties
These treaties have gained attention after India lost international arbitration disputes to Cairn Energy PLC, Vodafone Group BV, and Devas Mauritius Ltd. India now needs to balance safeguarding foreign investment with protecting public interest. While India had canceled more than 70 of its over 80 BITs by 2016, only seven countries have accepted the new model text treaty.
Investment Issues in Trade Agreements
The finance ministry is responsible for investment issues, while investment chapters are part of free trade agreements negotiated by the commerce department. Investment has become a contentious point in India’s proposed trade pact with the UK.
Tweaks in India’s Model BIT Text
The commerce and industry ministry has proposed adjustments to India’s model BIT text for some of its trade partners in discussions with the EU. India and the EU are currently negotiating a trade pact, an investment protection agreement, and an agreement on geographical indications. The EU had previously suggested an investment court system to resolve investor-state disputes with India.
SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth | Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7% per annum GDP growth in the least developed countries | No specific indicators mentioned in the article |
| SDG 16: Peace, Justice, and Strong Institutions | Target 16.3: Promote the rule of law at the national and international levels and ensure equal access to justice for all | No specific indicators mentioned in the article |
| SDG 17: Partnerships for the Goals | Target 17.14: Enhance policy coherence for sustainable development | No specific indicators mentioned in the article |
1. Which SDGs are addressed or connected to the issues highlighted in the article?
SDG 8: Decent Work and Economic Growth
The issues highlighted in the article are related to improving India’s position as an investor-friendly nation. This aligns with SDG 8, which focuses on promoting sustained, inclusive, and sustainable economic growth, full and productive employment, and decent work for all.
SDG 16: Peace, Justice, and Strong Institutions
The article mentions investor-state dispute settlement and the need for fair and equitable treatment to investments. These issues are connected to SDG 16, which aims to promote peaceful and inclusive societies, provide access to justice for all, and build effective, accountable, and inclusive institutions at all levels.
SDG 17: Partnerships for the Goals
The article discusses the need for third-party views and negotiations on free trade pact agreements. This relates to SDG 17, which emphasizes the importance of partnerships and international cooperation to achieve the Sustainable Development Goals.
2. What specific targets under those SDGs can be identified based on the article’s content?
Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7% per annum GDP growth in the least developed countries
The article highlights the need to improve India’s position as an investor-friendly nation, which can contribute to sustained economic growth.
Target 16.3: Promote the rule of law at the national and international levels and ensure equal access to justice for all
The article mentions issues related to investor-state dispute settlement and the need for fair and equitable treatment to investments, which align with promoting the rule of law and ensuring equal access to justice.
Target 17.14: Enhance policy coherence for sustainable development
The article discusses the need for third-party views and negotiations on free trade pact agreements, indicating the importance of enhancing policy coherence for sustainable development.
3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?
No specific indicators are mentioned or implied in the article that can be used to measure progress towards the identified targets.
4. Table: SDGs, Targets, and Indicators
| SDGs | Targets | Indicators |
|---|---|---|
| SDG 8: Decent Work and Economic Growth | Target 8.1: Sustain per capita economic growth in accordance with national circumstances and, in particular, at least 7% per annum GDP growth in the least developed countries | No specific indicators mentioned in the article |
| SDG 16: Peace, Justice, and Strong Institutions | Target 16.3: Promote the rule of law at the national and international levels and ensure equal access to justice for all | No specific indicators mentioned in the article |
| SDG 17: Partnerships for the Goals | Target 17.14: Enhance policy coherence for sustainable development | No specific indicators mentioned in the article |
Behold! This splendid article springs forth from the wellspring of knowledge, shaped by a wondrous proprietary AI technology that delved into a vast ocean of data, illuminating the path towards the Sustainable Development Goals. Remember that all rights are reserved by SDG Investors LLC, empowering us to champion progress together.
Source: m.economictimes.com
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