Feedback Here

fbook  tweeter  linkin YouTube
Global contents also translated in Chinese

India, EU FTA talks hits a hurdle as investment treaties set to lapse

As a part of the proposed FTA or otherwise, India and the EU are in disagreement over whether to negotiate a bilateral investment treaty (BIT) for mutual protection and promotion of investments. The EU wants the two to enter into a BIT as soon as possible followed by the FTA as individual investment protection agreements signed by its member-countries with India have already started to lapse.

The EU has also urged India to allow existing BITs to continue till a new one is negotiated. EU officials, who met senior officials from Department of Economic Affairs and Commerce Department last month discussed the matter and are now expected to respond on how the FTA negotiations should proceed.

Due to disagreement between the two sides over contentious issues such as lowering of import duties on automobiles and alcohol by India and recognition of India by the EU as a ‘data-secure’ country, the proposed India-EU FTA, officially known as the broad-based trade and investment agreement, is stuck for the last few years. The FTA, which would focus on goods and services, will also have a separate chapter on investments which would include measures for its promotion and protection. India’ BIT with Netherlands has already lapsed on November 30 and similar agreements with most other EU member countries are set to lapse in the first half of next year.

In order to avoid a string of litigations it has been facing over the last few years from global companies, New Delhi has come up with a model BIT draft based on which it now seeks to re-negotiate all its existing investment agreements. It understandably doesn’t want to give extensions to the existing agreements that lapse.

 
LATEST TOP NEWS
 


 
MOST POPULAR NEWS
VF Logo