Fresh investments by European companies in India and vice versa after April 1 won’t enjoy legal protection under any bilateral arrangement, as India has decided not to accede to requests by the European Union.
International Economic Law and Policy Blog | 22-feb-2017
In the transition to its new approach to investor protection, India has sought to terminate its existing BITs with individual EU Members. Now the European Commission is pressuring India to extend those existing treaties.
A successful conclusion of FIPA will provide a much-needed cover for Canadian investments in India and vice versa, and is expected to be an important catalyst in translating the announcements into reality.
India, along with Brazil, Argentina and some other nations, has rejected an informal attempt by the European Union and Canada to work towards a global investment agreement that would incorporate a contentious ISDS mechanism.
With the growing concern over the traditional ISDS system, it is highly unlikely that the AfCFTA will include an ISDS mechanism giving investors access to go to international arbitration under conventional international tribunals.