The Union Cabinet chaired by Prime Minister Narendra Modi on 10 November 2017 gave its approval for signing the Joint Interpretative Declaration (JID) between India and Colombia.
The declaration would impart clarity to the interpretation of the existing Agreement for the Promotion and Protection of Investments, which was signed between the two countries on 10 November 2009.
The declaration includes interpretative notes to be jointly adopted for many clauses, including the definition of investor, definition of investment, Fair and Equitable Treatment (FET), National Treatment (NT) and Most Favoured Nation (MFN) treatment, expropriation, Investor - State Dispute Settlement provision and Denial of Benefits.
About Joint Interpretative Declarations
The declarations play an important supplementary role in strengthening the investment treaty regime.
With increasing Bilateral Investment Treaty (BIT) disputes, issuance of such statements is likely to have strong persuasive value before arbitration tribunals.
Such pro-active approach by partners can foster a more predictable and coherent reading of treaty terms by arbitration tribunals.