Bilateral investment protection agreements subject to jurisdiction of domestic legal institutions:FM

4/17/2013
Finance Minister P Chidambaram has made it clear that any bilateral investment protection agreement has to be subject to jurisdiction of domestic legal institutions and India will not allow it to be subjected to foreign courts or tribunals. 

He said, New Delhi cannot allow highest court of the land to be subjected to any foreign courts or tribunals. Chidambaram was replying to questions at a breakfast meeting organized by the Canada-India Business Council in Toronto. The Minister was answering a question from Peter Sutherland, President and CEO of the Canada-India Business Council, who wanted to know the status of bilateral FIPPA treaty.

The Minister said, New Delhi has put Foreign Investment Promotion and Protection Agreement (FIPPA) on hold not only for Canada but other 83 countries too because of two major

legal issues including the right of a foreign investor to sue a sovereign State in a commercial dispute, and jurisdiction. The minister said that all agreements are under review.

However, he assured the audience that both the Comprehensive Economic Partnership Agreement (CEPA) and FIPPA would become a realty soon.
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