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Investing.com -- Britain and India are set to include a provision in their investment treaty that allows businesses to sue either government if policy changes are deemed to unfairly impact their investment or profits, according to a Reuters report on Friday.
The provision, known as the Investor-State Dispute Settlement (ISDS) mechanism, is designed to safeguard companies from potential unfair treatment under local laws. It is expected to be incorporated into a forthcoming investment treaty, which is likely to be struck alongside a free trade agreement.
Since leaving the European Union, Britain has not included the ISDS in any of its bilateral free trade agreements. However, it is a part of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) that Britain has joined. India has also taken steps to limit the ISDS in its treaties.
London reportedly advocated for the inclusion of the ISDS in the agreement with India. British businesses sought reassurance that they would receive fair treatment under the Indian legal system.
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