The EU Model Clauses for Bilateral Investment Treaties of EU Member States With Third Countries

Since the entry into force of the Lisbon Treaty, the EU investment policy has sought to establish a coherent framework for investment protection in the EU. To that effect, the ‘Grandfathering Regulation’ establishes transitional arrangements for bilateral investment treaties (BITs) between Member States and third countries, including procedures and conditions under which Member States are empowered to conclude new or amend existing agreements with third countries. Consistency with the EU’s investment policy and EU law are essential criteria against which Member States BITs are assessed as part of the authorization process that is prescribed in the Grandfathering Regulation. With a view to increasing consistency in the negotiations and resulting agreements of Member States with third countries, the European Commission has developed ‘Model Clauses for negotiation or re-negotiation of Member States’ Bilateral Investment Agreements with third countries’ for use by Member States. These serve as a useful point of reference for the EU investment policy, not only for Member States, but also other interested stakeholders.