Governments at the Centre and in the States must urgently invest in building their own capacity to handle the new generation of international investment arbitration.
Le Brésil n’a jamais approuvé un traité bilatéral d’investissement, ni signé la Convention du CIRDI. Malgré cela le pays a continué de recevoir d’importants flux d’investissement étranger direct.
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
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 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.