An official statement was issued on Wednesday after the Union Cabinet meeting, chaired by Prime Minister Narendra Modi, saying that the cabinet has approved the signing of the joint interpretative notes (JIN) agreement with Bangladesh.
The JIN holds a very important place as it will ensure smooth implementation of the investment promotion and protection pact between the two nations. It will also further strengthen the investment treaty regime, the statement said.
According to the statement issued, announcing such agreements will also have a positive impact on the tribunals. With the growing disputes regarding the bilateral investment treaty, such agreement will persuade the tribunals to take positive decisions. The statement said that such agreements will further encourage the tribunals to make more calculable and logical readings of the terms and conditions of the treaty.
It also read that the signing of JIN will also help in clearly analysing the already existing agreement for the promotion and protections of investments made by India nad Bangladesh.
The JIN includes explanation notes to be jointly accepted by both the nations in various fields like the definition of investor & investment; exclusion of taxation measures; national treatment and Most Favoured Nation (MFN) treatment; expropriation; essential security interests and settlement of disputes between an investor and a contracting party.