Bilateral Investment Protection Agreement

As with all the new reforms , the foreign investment policy of govt of India was also liberalised
in 1991 .
Negotiations undertaken with a number of countries to enter into Bilateral Investment Promotion
& Protection Agreement (BIPAs) in order to promote and protect on reciprocal basis investment
of the investors. Government of India have, so far, (as on July 2012) signed BIPAs with 82
countries out of which 72 BIPAs have already come into force and the remaining agreements are
in the process of being enforced.
BIPA applies to the investment made by an investor of one contracting party (the signing
country) in the territory of the other. BIPA benefits can be claimed by an investor who could be
a national of a signing country, or a legal person incorporated in that country. Further,
investments is widely defined to include everything that one expects in a multinationals
business movable or immovable property, shares and other securities, contractual rights,
intellectual property rights, concessions for prospecting, research and exploitation of natural
resources, and so on.
The agreement provides that each contracting party shall promote in its territory investments by
an investor of the other contracting party. Further, equitable treatment shall be provided to such
investments. BIPA provides for National and Most Favoured Nation (MFN) treatment. Thus a
contracting party should treat investors of the other party as favourably as it would treat its own,
or investors of any other country. Similar treatment is required for the returns on the
investments. This does not apply to benefits under certain obligations arising from other
international agreements or regional cooperation agreements. Similarly, matters pertaining to
taxation are excluded from National and MFN treatment
A detailed mechanism is available for settlement of disputes the Arbitral Tribunal for disputes
between the contracting parties; and the International Arbitration for disputes between an investor
and a contracting party. Recently, Vodafone considered arbitration under BIPA for its tax dispute
with Indian revenue authorities.
FDI Vs BIPA Vs CEPA
BIPA post establishment investment whereas FDI pre establishment investment agreement
Therefore FDI not covered under BIPA.
CEPA Pre and Post establishment commitments
As a result of a volatile economic or political environment or other reasons, investments by an
investor of one country in another may be adversely affected. Recent instances include GMR
losing an airport contract in Maldives, freezing bank accounts in Cyprus, and scrapping of
telecom licences among others. It may be possible to get some protection in some cases and,
accordingly, BIPA becomes relevant when investing in another country and thereafter. It is
understood that recently Etihads investment in Jet Airways was kept on hold as BIPA between
India and UAE was insisted upon.

( Now in mrunal bhai s style the boring part ,,,,,,,,,,,,,,,,,,,,,,,,,,, )

LIST OF COUNTRIES WITH WHOM BILATERAL INVESTMENT PROMOTION AND
PROTECTION AGREEMENTS (BIPA) HAS BEEN SIGNED (AS ON JULY, 2012)
S.N

Country

Date of Agreement

Date of Enforcement

1.

United Kingdom

14th March 1994

6th January 1995

2.

Russian Federation

23rd December 1994

5th August 1996

3.

Germany

10th July 1995

13th July 1998

4.

Malaysia

3rd August 1995

12th April 1997

5.

Denmark

6th September 1995

28th August 1996

6.

Turkmenistan

20th September 1995

27th February 2006

7.

Netherlands

6th November 1995

1st December 1996

8.

Italy

23rd November 1995

26th March 1998

9.

Tajikistan

13th December 1995

23rd November 2003

10.

Israel

29th January 1996

18th February 1997

11.

South Korea

26th February 1996

7th May 1996

12.

Poland

7th October 1996

31st December 1997

13.

Czech. Republic

11th October 1996

6th February 1998

14.

Kazakhstan

9th December 1996

26th July 2001

15.

Sri Lanka

22nd January 1997

13th February 1998

16.

Vietnam

8th March 1997

1st December 1999

17.

Oman

2nd April 1997

13th October 2000

18.

Switzerland

4th April 1997

16th February 2000

19.

Egypt

9th April 1997

22nd November 2000

by Aruna S.
For an extended list visit http://finmin.nic.in/bipa/bipa_index.asp
References :

http://finmin.nic.in/bipa/bipa_index.asp
http://business.gov.in/legal_aspects/bipa.php
http://www.thehindu.com/business/Industry/fdi-in-multibrand-retail-wont-take-away-right-ofstates-centre/article3911785.ece
I would like to say http://pib.nic.in ,but it involves tedious search , @ pib information is
scattered here and there , like all govt websites.