BIPA with Jordon comes into Force

Bilateral Investment Promotion and Protection Agreement (BIPA) between the Republic of India and the Hashemite Kingdom of Jordan has come into force today with the exchange of Instruments of Ratification (IRs) between the two countries. Dr Anup K. Pujari, Joint Secretary (Foreign Trade), Department of Economic Affairs, Ministry of Finance, on behalf of India and Mr Mohamed Ali Daher, Ambassador of Hashemite Kingdom of Jordan in New Delhi, exchanged the IRs. Shri Virender Gupta, Additional Secretary, Ministry of External Affairs, presided over the ceremony.

BIPA seeks to promote and protect investments from either country in the territory of the other country with the objective of increasing bilateral investment flows. The text with Jordon was finalized in one round of negotiation held in New Delhi on 23 August, 2006. Indian model text was the basis of negotiation. Cabinet had approved signing and ratification of BIPA on 30 November, 2006. The agreement was signed in New Delhi on 01 December, 2006 by Shri P Chidambaram, the then Finance Minister.

BIPA requires both the countries to encourage and create favourable conditions for investors of each other to make investments in their territory and to admit investments in accordance with their laws. Investments from either country in the territory of the other country are to be accorded National Treatment and Most Favoured Nation Treatment implying that the investment shall be provided a treatment which is not less favourable than that is provided by the country to investments of its own investors or investors from any other country. Besides, investors are to be provided Most Favoured National Treatment in respect of their investment. It also provides an elaborate dispute resolution mechanism which includes recourse to negotiations, conciliation and international arbitration.

India has so far signed BIPA with 73 countries. Of these, 61 have already been ratified and have come into effect. BIPA with Syria has also become effective from today. Jordon is the 63rd country with which BIPA has come into force.

BSC/BY/SS/DN-16/08