The Bilateral Investment Treaty (BIT) signed in June, 2019, enters into force with effect from 5th June 2025.
- This new BIT replaces the earlier agreement enforced in 2000, ensuring continuity in the protection of investments between the two nations.
India-Kyrgyzstan Bilateral Investment Treaty (BIT)
- The BIT balances the investor rights with the sovereign regulatory powers of both countries, and reflects a shared commitment to create a resilient and transparent investment climate.
- Key Features of the BIT
- Definition of Assets: Enterprise-based definition with an inclusion and exclusion list & clarifies investment characteristics: capital commitment, profit expectation, risk assumption, etc.
- Exclusions for Policy Space: Excludes local government, government procurement, taxation, compulsory licenses, etc.
- Removes the Most Favored Nation (MFN) clause: Which previously allowed investors to selectively import favorable provisions from other treaties signed by the Host State.
- This removal will ensure more consistent treatment.
- The BIT contains General and security exceptions: The attempt is to carve out a policy space for the State.
- General exceptions E.g., Protection of environment, ensuring public health and safety, etc.
- Revised dispute resolution mechanism: Requires investors to first use local remedies before international arbitration, promoting alternative dispute resolution.
About Bilateral Investment Treaty (BIT)
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