EUROPE: New rules adopted on bilateral EU investment agreements

Thursday December 13 2012

The European Parliament and Council have adopted a regulation on bilateral EU investment agreements. Under the Lisbon Treaty, which entered into force in December 2009, investment policy has become an exclusive EU competence.

The Regulation clarifies the legal status of those agreements which were concluded prior to the entry into force of the Lisbon Treaty under EU laws and confirms that they may be maintained in force until they are replaced by an EU investment agreement.

The Regulation also establishes a mechanism for empowering Member States under certain conditions to negotiate and conclude bilateral investment agreements with countries not immediately scheduled for EU-wide investment negotiations. 

The 1200-plus existing Bilateral Investment Agreements concluded by Member States remain valid under international law. The regulation makes it fully clear that the benefits and rights available under those agreements cannot be denied even with the development of a comprehensive EU-level policy role on investment.

A Q and A is available here.

Click on the above link for more details.