Economics, Investments, Latvia, Legislation

Artis Kampars.

The bill "On the Government of the Republic of Latvia and the Government of the Republic of India's Agreement on the Stimulation and Protection of Investments" was supported by the Cabinet on November 25, 2008.

The agreement prescribes several measures for the protection of investments and investors' rights, including full security guarantees, the application of national and most-favored status, the prevention of discrimination, free transfer of investments, and compensation for losses in cases foreseen by the agreement, as well as a mechanism for the settlement of disputes.

Until now, investments made by Latvian and Indian investors on the other country's territory have been covered by the latter nation's regulatory enactments. No binding international agreements exist between the two countries regarding the applicable conditions for dealing with investments made by nationals of the other country.

Following its signing, the agreement will have to be approved by the Saeima before coming into force.