IA Reporter | 3 January 2016
ANALYSIS : In final version of its new model investment treaty, India dials back ambition of earlier proposals – but still favors some big changes
by Joel Dahlquist and Luke Eric Peterson
Following the release in April of 2015 of a draft model investment treaty (discussed previously here), the government of India last week unveiled a final version of its proposed negotiating text (click to download).
As we note below, the final model walks back some of the most ambitious proposals in the earlier draft (for e.g. the scope for states to make counter-claims against investors in relation to certain investor responsibilities) – but leaves largely intact certain other innovations, such as the requirement for investors to exhaust domestic remedies (for at least five years) before turning to international arbitration.
In conjunction with release of the final model text, India has also announced that responsibility for negotiation of future investment treaties and investment chapters of free trade agreements will lie with the country’s Ministry of Finance. Previously, that Ministry had negotiated only BITs, whereas the Ministry of Commerce had handled investment provisions in FTAs.
A brief memorandum announcing this change cited a desire to ensure “convergence” between trade and investment issues.