Live Events(You can now subscribe to our(You can now subscribe to our Economic Times WhatsApp channelNew Delhi | Milan: India and the United Kingdom are still negotiating the proposed Bilateral Investment Treaty (BIT) which was to be announced alongside the free trade agreement (FTA) and the Double Contribution Convention Agreement.Two issues, the sunset clause and dispute resolution, are pending, which is why the BIT talks are continuing, said people with knowledge of the matter. The UK is keen on bringing taxation issues within the purview of the BIT, something about which India has reservations, they said. "Parliament has the sovereign powers on taxation and that cannot be brought within the BIT. But hopefully these issues can be resolved soon," one of the persons told ET on condition of anonymity. Earlier, there were plans to conclude all three deals simultaneously.India insists on exhaustion of local remedies before an investor can take the state to arbitration for a dispute, something that many countries, including the UK, are opposed to under the investor state dispute settlement As per the model BIT text, investors need to exhaust local solutions for at least five years before arbitration.
