Critical Analysis of Comprehensive Economic Cooperation Agreement between the Republic of India and the Republic of Singapore

Abstract

The relationship between state and foreign investors is governed by a body of law referred to as International Investment Law. It regulates the treatment of foreign direct investment and foreign investors. This field of law consists of numerous bilateral investment treaties [“BITs”] and the aim of these treaties is to attract foreign investment in order to boost economic development by providing certain protections to the foreign investors and their investments.

Depending on the provisions of the relevant treaty, there are certain obligations to be fulfilled by the respective governments. In case of any dispute that may arise between the government and foreign investor, the arbitral tribunals are required to resort to the provisions of the treaty in question. This article analyses the provisions of Comprehensive Economic Cooperation Agreement signed by two major economies of world, Republic of India and Republic of Singapore and includes, inter alia, in-depth discussions of the standards to provide fair and equitable treatment, clauses prohibiting arbitrary and discriminatory treatment i.e. national treatment and most-favoured-nation [“MFN”] treatment, the scope of expropriation provisions and the impact of emergencies and a state of necessity on the obligations of both India and Singapore under the agreement.

This Article also views the provisions of the Comprehensive Economic Cooperation Agreement it analyses through the practice of arbitral tribunals and the way they have concretized the often vague standards of international investment law.

Keywords: BIT, Investor, Investment, Expropriation