Developing countries, including India, should build capacity instead of playing the victim as the structure of international arbitration was heavily biased towards the developed countries, a top Finance Ministry official said.
India and United States will try to narrow differences on a proposed Bilateral Investment Treaty (BIT) next week, although an early breakthrough seems unlikely.
Reform of the international investment agreement regime has swept many countries, including Australia, South Africa, Indonesia, India and the EU, writes the Secretary-General of CUTS. What are the reasons for the growing scepticism ? What lies ahead ?
It is likely that the Antrix case — which could see the Government of India paying $1 billion if it loses — would have had a different outcome had the new model BIT been at issue.
India has turned its attention to comprehensive economic partnership agreements with Singapore, Japan and South Korea after having fixed the loopholes in the much-abused investment treaties with Mauritius and Cyprus.
The government on Monday said it has framed the model Bilateral Investment Treaty to minimise Cairn Energy type of dispute which has resulted in demand for compensation of $5.6 billion from India.
India is again in the limelight of investor-state dispute settlement (ISDS). An international tribunal has penalised the country earlier this week with a monetary compensation estimated at one billion dollars.