Agreement for the Termination of Bilateral Investment Treaties between the Eu Member States

The agreement for the termination of bilateral investment treaties between the EU member states has been a topic of great discussion in recent years. The aim of this agreement is to remove the potential conflicts and complexities that arise from each member state having different bilateral investment treaties (BITs) with third countries.

BITs are agreements between two countries that provide protection to investors from one country who invest in the other. The BITs typically contain provisions for the protection of investments, including guarantees of fair and equitable treatment, compensation for expropriation, and access to international arbitration for dispute resolution.

While BITs can be beneficial in some cases, they can also lead to confusion and conflict between member states. For example, if an investor from one member state relies on a BIT with a third country, it may conflict with the BIT that another member state has with the same third country. This can lead to disputes and legal challenges, which can be time-consuming and costly.

The agreement to terminate the BITs between member states aims to simplify the investment landscape in Europe while ensuring that foreign investors are still protected. Instead of relying on the individual BITs, investors will be able to rely on the protections provided by the EU’s Common Commercial Policy.

The agreement has already been signed by several EU member states, including France, Spain, and the Netherlands. Other member states are expected to follow suit, with the aim of having all BITs terminated by the end of 2021.

While some investors may be concerned about losing the protections afforded by the individual BITs, the EU’s Common Commercial Policy provides a robust framework for investment protection. The policy includes provisions for the protection of investments, dispute resolution, and access to justice.

Overall, the agreement for the termination of bilateral investment treaties between the EU member states is a positive step towards simplifying the investment landscape in Europe while ensuring that foreign investors are still protected. As more member states sign the agreement, investors can have confidence that their investments are protected by robust EU-wide standards.