Thursday, March 1, 2012

Bilateral investment treaties (BITs)

What are BITs?

**Bilateral investment treaties (BITs) are agreements between two countries for the reciprocal encouragement, promotion and protection of investments in each other's territories by companies based in either country.
** Treaties typically cover the following areas:


--scope and definition of investment, 
--admission and establishment, 
--national treatment, 
--most-favoured-nation t
reatment, 
--fair and equitable treatment,
-- compensation in the event of expropriation or damage to the investment, 
--guarantees of free transfers of funds, and
-- dispute settlement mechanisms, both state-state and investor-state.

*** India has also signed more than 70 Bilateral Investment Treaties (BITs) and is in the process of negotiating many more such BITs with countries like the US.







INDIAN BITs AT A GLANCE-

- India signed its first BIT in 1994 with the United Kingdom .

- Since 1994, India has signed BITs with 75 States

- Out of which 66 are already in force and 9 are yet to beentered into force.

- Negotiations with another 25 States are underway.

-Around 40 B I T s are with develo ping and less developed States.

-Around 20 of the BITs enforced have been done in last five years.






Courtesy - Nisha Dolas, Surekha Dabhade