Why in news?
The Cabinet gave its approval for the Joint Interpretative Notes (JIN) on the Agreement between India and Bangladesh.
What is Joint Interpretative Notes (JIN)?
- The JIN includes interpretative notes to be jointly adopted for many clauses.
- It includes the definition of investor, definition of investment, exclusion of taxation measures, Fair and Equitable Treatment, National Treatment and Most Favoured Nation treatment.
- It also includes the interpretations of expropriation, essential security interests and Settlement of Disputes between an Investor-and a Contracting Party.
What are the impacts?
- The JIN would impart clarity to the interpretation of the existing Bilateral Trade and Promotion Agreement (BIPA).
- It will ensure to ensure smooth implementation of the investment promotion and protection pact.
- 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.
- Such pro-active approach can foster a more predictable and coherent reading of treaty terms by arbitration tribunals.
Source: The Hindu
