The Hindu Business Line : India signs investment protection pact with Brunei

Investment protection: The Finance Minister, Mr P. Chidambaram, and the Minister of Finance of Brunei, Mr Pehin Dato Rahman Ibrahim, during the signing of an agreement in the Capital on Thursday. Brunei becomes the 70th country with whom India has so far signed investment protection pacts.

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New Delhi, May 22 India has signed a bilateral investment promotion and protection agreement (BIPA) with Brunei Darussalam here on Thursday.

While the Union Finance Minister Mr P. Chidambaram signed the agreement on behalf of India, Mr Pehin Dato Rahman Ibrahim, Minister of Finance, Brunei signed it from Brunei Darussalam’s side.

On the occasion, Mr Chidambaram said that Brunei becomes the 70th country with whom India has so far signed the BIPA.

Observing that Brunei is the third largest producer of oil in South-East Asia and the fourth largest producer of liquefied natural gas (LNG), he hoped that the agreement would serve as a catalyst in boosting investment flows between the two countries.

The BIPA seeks to protect and promote investments from either country in the territory of the other country with the objective of increasing bilateral investment flow.

An official release said that the agreement also stipulates Most Favoured Nation (MFN) treatment and national treatment, besides providing elaborate dispute resolution mechanism.

BIPA is for a period of 10 years.

Thereafter, it shall continue to remain in force until the expiry of 12 months from the date on which either party gives a written termination notice.

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