Argentina’s Default, Vulture Funds and Sovereign Debt Restructuring

Oscar Ugarteche and Ariel Noyola Rodríguez | Guest Blog | September 23, 2014

On September 9, 2014, the United Nations General Assembly passed a resolution to create a new multilateral legal framework for sovereign debt restructuring processes. The resolution, drafted by Bolivia on behalf of the Group of 77 (consisting of 133 member-countries) plus China, was approved with 124 votes in its favour. There were 41 abstentions and only 11 members (including the US, the UK, Japan, Canada and Israel) voted against it. The resolution notes that “sovereign debt crises are a recurring…

FDI in Defence: Missing the Reality

By Vishnu Bhagwat | Guest Blog | August 21, 2014

The overblown hype over the increased FDI ceilings in the defence sector, touting that India would become a major arms exporter from currently being the top importer in the world, is unrealistic. The exaggerated expectations that by increasing the FDI limits from the current 26 percent to 49 percent for foreign original equipment manufacturers will ensure rapid transfer of technology and setting up of vast manufacturing facilities for India’s armed forces as well as for arms exports may turn…

FDI Policy on Multi-brand Retail: In Cold Storage?

By Shekar Swamy | Guest Blog | July 30, 2014

In September 2012, the UPA government announced its policy of permitting 51 percent FDI in multi-brand retail with accompanying riders. In an unusual admission that they did not achieve a consensus on the policy, the UPA left it to the states to decide if they would permit large-format foreign retailers to open outlets within their borders. Promptly, a majority of the States declared that foreign retailers are not welcome in their territories.

As the Congress lost state elections in Delhi…

Vodafone’s Tax Dispute: Which Way Are We Headed?

By Kavaljit Singh | Blog | July 15, 2014

On 17th June, the Indian government appointed R C Lahoti, former Chief Justice of India, as arbitrator in Rs.200000 million tax dispute with the UK-based telecom giant Vodafone. The appointment of Mr. Lahoti was in response to an arbitration notice served by Vodafone International Holdings BV (its Dutch subsidiary) in April 2014 under the India-Netherlands Bilateral Investment Promotion and Protection Agreement (BIPA) signed in 1995.

The international arbitration would be conducted under the United Nations Commission on International Trade Law….

Reshaping India’s FTA Policy

By Kavaljit Singh | Blog | July 7, 2014

The new NDA government has recently announced its decision to review India’s existing free trade agreements (FTAs). “I have instructed the ministry to do a complete analysis of each of the FTAs, as not every FTA is seen completely beneficial to India… The ministry will come out with a report on it soon. It has to happen in a fortnight,” said Nirmala Sitharaman, Minister of state for Commerce and Industry on June 14, 2014. This decision apparently indicates the willingness…