Signing of BIT with US put off
Signing of BIT with US put off
By Sabihuddin Ghausi
KARACHI, Feb 28: The signing of a Bilateral Investment Treaty (BIT) between Pakistan and the US, expected on the eve of visit of President Bush this weekend in Islamabad, has apparently been put off again as businessmen give no indication of firm answers from the US on objections raised by Pakistan on certain clauses.
Business leaders in Karachi say that the Board of Investment (BoI) is understood to have expressed reservations on the arbitration and dispute resolution clauses proposed in the BIT. The Americans want dispute resolution according to their laws and in their courts.
“Indians will never accept this condition,” a former chief of the SITE Association of Industry remarked adding that a compromise approach to this clause was to follow international practices for appointment of arbitrator and resolution of bilateral disputes.
Pakistan and US are engaged in discussions on signing a BIT for more than two years as it is considered a step towards concluding the Free Trade Agreement (FTA). Pakistan proposed an FTA with US when Razzak Dawood was the commerce minister.
By Sabihuddin Ghausi
KARACHI, Feb 28: The signing of a Bilateral Investment Treaty (BIT) between Pakistan and the US, expected on the eve of visit of President Bush this weekend in Islamabad, has apparently been put off again as businessmen give no indication of firm answers from the US on objections raised by Pakistan on certain clauses.
Business leaders in Karachi say that the Board of Investment (BoI) is understood to have expressed reservations on the arbitration and dispute resolution clauses proposed in the BIT. The Americans want dispute resolution according to their laws and in their courts.
“Indians will never accept this condition,” a former chief of the SITE Association of Industry remarked adding that a compromise approach to this clause was to follow international practices for appointment of arbitrator and resolution of bilateral disputes.
Pakistan and US are engaged in discussions on signing a BIT for more than two years as it is considered a step towards concluding the Free Trade Agreement (FTA). Pakistan proposed an FTA with US when Razzak Dawood was the commerce minister.
posted by India News Watch at 10:03 AM
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