January 18, 2006	Wednesday	Zilhaj 17, 1426

ISLAMABAD, Jan 17: Pakistan and United States will start on Wednesday the fourth round of negotiations to develop consensus on the remaining articles of the Bilateral Investment Treaty (BIT).

An official said that during three-day talks (Jan 18-20) the technical experts of the two countries would deliberate on the controversial articles of the treaty.

A press release of the American embassy in Islamabad said that the US team was led by the State Department and the Office of the US Trade Representative, with participation of the US Commerce and Treasury Departments and the US Embassy.

The US and Pakistan are negotiating a BIT to broaden and strengthen their bilateral economic relationship.

“We believe a high-standard agreement would assist Pakistan in its efforts to attract private investment, boost economic growth and prosperity, and create new jobs,” said the press release.

The stock of US foreign direct investment in Pakistan was $991 million in 2004. BITs extend certain basic protections to investors and their investments, and provide mechanisms for settling investment disputes, added the press release.

According to informed sources, it was likely to conclude the negotiation in the fourth round on the BIT for its subsequent signing, which was linked by the Washington with the initiation of talk on free trade agreement (FTA) with Pakistan.

Pakistan will have to be careful in negotiation on BIT as Washington was bent upon introducing harsh clauses in the proposed draft so that in case of litigation, US investors should enjoy certain advantageous position.

The United States had earlier signed BIT with about 40 countries including special trade agreements with Canada and Mexico. “And in case of litigation, those countries always suffered financially who concluded BIT and FTA with the US government”, the source added.

“It is better to have no agreement than a bad agreement,” the sources said.