THE INDIA-BRAZIL BIT: ONE STEP FORWARD, TWO STEPS BACK
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The Investment Cooperation and Facilitation Treaty Between the Federative Republic of Brazil and the Republic of India is a landmark international investment agreement for several reasons. Both countries are one of the largest economies in the world and have denounced the forum of investor-state arbitration in the past. Both countries have, in recent years, demonstrated their displeasure with the constraints on the right to regulate that the investorstate dispute settlement mechanism embodies. Thus, this bilateral treaty is apotentially ground-breaking treaty. This article critically analyses important provisions of the treaty. The article first gives an overview of the approach taken by the two countries with respect to investment agreements. It then analyses important provisions under the treaty. The last part of the article discusses the dispute settlement mechanism proposed under the treaty and critically analyses the decision to exclude the mechanism of investor-state arbitration. The overall objective of the article is to review the substantive and procedural provisions of the treaty to show how this type of agreement strikes a new balance between the protection of investors and the right to regulate.