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.
