The cabinet today approved the signing of the joint interpretative notes (JIN) agreement with Bangladesh to ensure smooth implementation of the investment promotion and protection pact. JIN play an important supplementary role in strengthening the investment treaty regime, an official statement said after the Union Cabinet meeting, chaired by Prime Minister Narendra Modi. With increasing bilateral investment treaty disputes, issuance of such statements is "likely to have strong persuasive value before tribunals", it said. "Such pro-active approach by States can foster a more predictable and coherent reading of treaty terms by arbitration tribunals," it added. The JIN would impart clarity to the interpretation of the existing agreement between India and Bangladesh for the Promotion and Protection of Investments (BIPA). The JIN includes interpretative notes to be jointly adopted for many clauses including 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.
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