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Report No. 260

(ii) Suggested draft:

4.5.7 Specific drafting language is not provided. However, the following suggestions are made:

1. Articles 11 and 12 may be redrafted to firstly, specify a general requirement of compliance with laws; and secondly, lay down an exhaustive list of areas in which noncompliance of laws would attract the consequences under Article 14.10 and 14.11.

2. The obligation under Article 12.2. to "contribute to the development objectives of the Host State" may be treated as a general requirement, rather than one linked to Article 14.

3. Under Article 14, instead of requiring the investor to demonstrate compliance with laws, it may be sufficient to allow the Host State to raise this issue in its response/ counter-claim and to prove the same before the tribunal.

4. Certain transparency requirements may be clearly imposed on the Host State, such as making certain types of information publicly available, including information relating to laws and regulations, administrative procedures, rulings, judicial decisions, and international agreements, as well as draft or proposed rules.

Analysis of the 2015 Draft Model Indian Bilateral Investment Treaty Back

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