Davies signs Trade Agreement with Kuwait
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Issued Date: 08 Oct 2009
The climate for doing business with Kuwait was boosted today with the signing
by the UK of a trade treaty with the Gulf state.
Trade Minister Lord Davies and Kuwaiti Finance Minister Mustafa Jassem al-Shamali
signed an Investment Promotion and Protection Agreement (IPPA) in London.
An IPPA is a treaty designed to guarantee fair treatment for the investments
of individuals and companies in an overseas market - and to allow for a level
playing field by ensuring they are treated in the same way as local companies
and other foreign investors.
Lord Davies said:
“It’s vital for jobs and growth that UK companies look for new markets
oversees and that we continue to welcome inward investment here in the UK.
“I’m delighted to sign this Agreement today. It will provide reassurance to
companies that their foreign investments are protected by internationally
recognised standards, whilst acting as an incentive for companies to seek to do
new business overseas.”
Lord Davies added that international investment brought many benefits for
both the home and overseas state including capital to grow businesses, high
quality jobs, and sharing of best business practice.
Mustafa Jassem al-Shamali said: “Overseas investment has real benefits both
for the UK and Kuwait and is important for global growth.
“I’m very pleased to sign this treaty which strengthens the economic links
between our two countries and will encourage companies to look for new
investment opportunities.”
Notes:
1. IPPAs are treaties between the UK and another country - sometimes known as
Bilateral Investment Treaties or BITs - that set high standards of protection
for UK investors in foreign countries and vice versa.
2. The UK already has similar agreements in place with over 100 trading
partners. They can and often do encourage UK investment overseas and foreign
direct investment into the UK, by signalling a commitment by both Governments to
open and transparent investment markets.
3. Key provisions in IPPA agreements ensure that:
· Foreign businesses are not subjected to unfair or arbitrary treatment by
the host Government.
· Foreign businesses are not treated differently or unfairly compared with
domestic competitors and other foreign investors.
· Businesses are compensated if assets are taken into state ownership.
· Businesses investing in another country do not face restrictions on what
they can do with returns on investments.
· A system of arbitration exists to settle disputes.
Department for Business, Innovation & Skills
The Department for Business, Innovation and Skills (BIS) is building a
dynamic and competitive UK economy by: creating the conditions for business
success; promoting innovation, enterprise and science; and giving everyone the
skills and opportunities to succeed. To achieve this it will foster world-class
universities and promote an open global economy. BIS - Investing in our future.
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Article Published/Sorted/Amended on Scopulus 2009-10-09 11:54:20 in Economic Articles
