Latvian-Belarusian intergovernmental agreement on investment promotion and protection to be terminated

RIGA - Saeima on Thursday forwarded to committees a draft bill on termination of the Latvian-Belarusian intergovernmental agreement on investment promotion and protection.

The agreement was concluded in accordance with the Convention on the Settlement of Investment Disputes between States and Nationals of Other States.

The agreement is one of the so-called "old generation" investment protection agreements, which are characterized by generally formulated provisions that allow private arbitration courts to interpret them broadly, most often in favor of the investor, explains preamble to the bill. In many of these disputes, the arbitration court rules that the country where investments were made must compensate the investor, losing millions of euros.

International organizations that have studied the issue, such as the Organization for Economic Cooperation and Development and the United Nations Conference on Trade and Development, have advised denouncing, termination or amending such investment protection agreements, says the bill's preamble.

The agreement was signed on March 3, 1998 in Riga, and entered into force on December 21, 1998.