Bilateral Investment Treaty Draft prepared
Q. Which statement is/are true about Bilateral Investment Treaty draft?- Published on 01 Aug 15
a. The Law Commission has suggested a host of changes in the model Bilateral Investment Treaty draft
b. Changes will make it more investment friendly and include a confidentiality clause
c. It will form the basis for renegotiation of the existing pacts and negotiating new ones with different countries
d. All of the above
ANSWER: All of the above
The Law Commission has also suggested inclusion of the most favoured nation in the model treaty. It further recommended that the government procurement should not be excluded from the treaty protection. The Commission also said it is not necessary to exclude taxation from the purview of the treaty as "power to tax is an integral part of the State's police powers in international law. This power exists independent of a treaty, unless the tax itself is arbitrarily imposed to destroy the State's regulatory freedom".