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The Union Cabinet today approved the signing and ratification of a Bilateral Investment Promotion and Protection Agreement with the Republic of Senegal. This decision is likely to increase the flow of investment between India and Senegal.
Bilateral Investment Promotion and Protection Agreements (BIPA) have been signed by the Government of India till date with 57 countries since negotiations were commenced in 1994. Agreements have also been finalized with eight other countries and negotiations are in progress with another 25 countries. These negotiations have been conducted on the basis of a negotiating text approved by the Steering Committee on Economic Reforms.
The Model India Text of BIPA was formulated by an Inter-Ministerial Group who incorporated Indian sensitivities while taking note of several other such bilateral agreements negotiated earlier. The salient features of this Text include, inter-alia, the definition of Intellectual Property Rights (IPRs) which is to be defined in accordance with domestic laws. This was perceived as being important, for the agreements reached in the Uruguay Round to allow developing countries a ten year transition period to adopt the provisions of Trade Related Intellectual Property Rights (TRIPS). It provides for extending National Treatment and Most Favoured Nation (MFN) treatment of foreign investments, and in addition MFN treatment, for investors. Expropriation and nationalization are to be restored to only on a non-discriminatory basis and subject to the payment of compensation. Repatriation of all returns from investment is to be allowed without unreasonable delay and on a non-discriminatory basis. In respect of disputes between an Investor and the host Government, as well as between the two Governments, a dispute resolution mechanism including an international arbitration procedure is prescribed.
YSR/DS/HS/LV
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