New EU Investment package set to boost trade and underpin investor rights – individual member states no longer allowed to conclude BITs
Before the Lisbon Treaty came into force each EU country concluded its own BITs in order to protect the foreign direct investments (FDI) of their own nationals. Now the competence to conclude BITs has shifted to the EU. In July the European Union issued draft regulation to guarantee the almost 1,200 existing and pending BITs, and to provide for a transitional regime.
The EU also published a comprehensive foreign investment policy, in which BITs play an important role. As a market leader in both in- and outbound FDI, the EU’s goal is to increase its competiveness and to create smart and sustainable growth. China, Russia and India are considered to be candidates for a stand-alone EU-wide BIT in the near future.
Click here for the regulation and investment policy.