Lok Sabha Question No. 1290 (UNSTARRED), answered on 2016-07-25
Subject: Bilateral Investment Treaties
Ministry: COMMERCE AND INDUSTRY
Asked by: CH. MALLA REDDY, MUTHAMSETTI SRINIVASA RAO (AVNTHI)

## GOVERNMENT OF INDIA MINISTRY OF COMMERCE & INDUSTRY DEPARTMENT OF INDUSTRIAL POLICY & PROMOTION

## LOK SABHA

## UNSTARRED QUESTION NO. 1290. TO BE ANSWERED ON MONDAY, THE 25 TH  JULY, 2016.

## BILATERAL INVESTMENT TREATIES

## 1290. SHRI CH. MALLA REDDY: SHRI MUTHAMSETTI SRINIVASA RAO (AVANTHI):

Will the Minister of COMMERCE AND INDUSTRY

be pleased to state: वाणिज् यवव द्यग ं ्री

- (a) whether India proposes to renegotiate all its Bilateral Investment pacts and to replace them with new Bilateral Investment Treaties;
- (b) if so, the details and the present status thereof along with the pacts which are proposed to be replaced;
- (c) whether the new Model of the Bilateral Investment Treaty will provide stability to foreign investors and prevent disputes with Multi-National Companies and if so, the details thereof?
- (d) whether India and the United States (US) have decided to speed up the talks for long ending Bilateral Investment Treaty and if so, the details thereof;
- (e) whether the U.S. is pushing India to wrap up the talks when the second round of  annual  Strategic  and  Commercial  Dialogue  (S&CD)  takes  place  or  when the next round of Trade Policy Forum takes place this year in New Delhi and if so, the details thereof and;
- (f) whether the U.S. wants India to accede to a treaty similar to the FTA signed with Japan and Korea and if so, the details thereof along with the steps taken by the Government to protect the indigenous industries in the country?

## ANSWER

## वाणिज् यवव द्यग ााज् यं ्रीस् वतं ््रभााा(स्रींतंरीिरंमलााीरीतंाांि( THE MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF COMMERCE & INDUSTRY (SHRIMATI NIRMALA SITHARAMAN)

- (a): Yes  Madam.  India  proposes  to  renegotiate  all  those  Bilateral  Investment  pacts whose initial validity has expired and to replace them with new Bilateral Investment Treaties (BITs).
- (b): Out of the total 83 treaties signed by India so far, 58 treaties are being terminated. The notices have been sent to the respective Governments through the diplomatic channel.
- (c): The  new  Indian  Model  Bilateral  Investment  Treaty  text  is  aimed  at  providing appropriate  protection  to  foreign  investors  in  India  and  Indian  investors  in  the foreign  country,  in  the  light  of  relevant  International  precedents  and  practices, while  maintaining  a  balance  between  the  investor's  rights  and  the  Government obligations.
- (d): Technical discussions with the US side have been continuing on the basis of the revised Model Bilateral Investment Treaty (BIT) text.
- (e): No Madam.
- (f): Yes  Madam.  USA  has  expressed  its  desire  to  sign  a  treaty  similar  to  the  FTA signed with Japan & Korea. However, Japan and Korea FTAs were signed based on  earlier  Model  Bilateral  Investment  Treaty  (BIT)  text  of  India  which  has  since been  revised  and  all  discussions  now  also  being  done  on  the  basis  of  the  new Indian Model Bilateral Investment Treaty (BIT) text.

********