Nod for Bangladesh JIN pact: 

Nod for Bangladesh JIN pact: 

Context: The Cabinet gave its approval for the Joint Interpretative Notes (JIN) on the agreement between India and Bangladesh for promotion and protection of investments.

Introduction:

• The meeting, chaired by Prime Minister Narendra Modi, approved key trade, commerce, health and foreign cooperation proposals.
• The meeting also gave approval for signing of the Joint interpretative notes(JIN) agreement between India and Bangladesh.
• The JIP agreement is aimed at ensuring smooth implementation of the investment promotion and protection pact.
• Apart from the above approval cabinet also gave nod for Memorandum of Understanding with Bangladesh for cyber security cooperation.The Cabinet also gave green signal to sign a JIN agreement with Germany for cooperation in the field of healthcare.

Significance of JIN Pact:

• It will boost bilateral investments between India and Bangladesh.
• Agreement involves promotion, protection of investments.
• The JIN would impart clarity to the interpretation of the existing agreement between India and Bangladesh for the promotion and protection of Investments.
• It will help in strengthening the investment treaty regime.

About JIN Pact:

• It includes interpretative notes to be jointly adopted for many clauses including the definition of investor, definition of investment, exclusion of taxation measures, fair and equitable treatment, National Treatment and Most Favoured Nation treatment, expropriation, essential security interests and Settlement of Disputes between an Investor and a Contracting Party.
• Joint Interpretative will strengthen the investment treaty regime.

Possible implications:

• In the present situation of bilateral investment treaty disputes, it likely to have strong persuasive value before tribunals.
• Such a proactive approach by states can foster a more predictable and coherent reading of treaty terms by arbitration tribunals.