BITs should capture national interest, current model will be revamped: FM
Finance Minister Nirmala Sitharaman on Saturday said that going forward the bilateral investment treaties should capture national interest in relation to regulatory powers and serve as a guide to arbitrators in resolving disputes.
Speaking at the inauguration of the first PG Certificate Course on International Commercial & Investment Treaty Arbitration in New Delhi, Sitharaman said issues related to Bilateral Investment Treaty (BIT) are unique to the sovereign and hence BIT should be negotiated stand-alone rather than as a part of FTA agreement.
Stating that arbitrators have often ignored the judicial decisions of the host country, Sitharaman said an investment treaty must not only provide better regulatory powers to the nations but must also serve as guidance to arbitrators to restore faith in arbitration.
"I strongly believe, moving forward, the framework of investment treaties should capture national interests in relation to regulatory powers and strengthen guidance for arbitrators in resolving disputes, keeping in mind nations' interests and circumstances as well," Sitharaman said.
Presently, India is negotiating this treaty with the UK, Saudi Arabia, Qatar, and the European Union (EU).
