In a bid to boost bilateral investments between India and Bangladesh, the Cabinet on Wednesday gave its approval for the Joint Interpretative Notes (JIN) on the Agreement between both the nations for the Promotion and Protection of Investments.
The JIN would impart clarity to the interpretation of the existing Agreement between India and Bangladesh for the Promotion and Protection of Investments.
The JIN includes interpretative notes to be jointly adopted for many clauses, including, the definition of investor, definition of investment, exclusion of taxation measures, Fair and Equitable Treatment, National Treatment and Most Favoured Nation treatment, expropriation, essential security interests and Settlement of Disputes between an Investor-and a Contracting Party, an official statement said.
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Joint Interpretative Statements, in general, play an important supplementary role in strengthening the investment treaty regime.
With increasing Bilateral Investment Treaty disputes, issuance of such statements is likely to have strong persuasive value before tribunals, the statement said, adding that such pro-active approach by States can foster a more predictable and coherent reading of treaty terms by arbitration tribunals.