Dispute Settlement in the EU-China Investment Treaty

What is it about?

The conclusion of a treaty on investment between China and the European Union would have major economic effects, while entailing the risk of disputes over commitments made, such as opening of markets to each other’s investors or protection of the environment and labour rights. The current text, which is almost final after several years of negotiations, shows that the dispute settlement procedures envisaged are intergovernmental and largely inspired by those of the World Trade Organization, as well as recent free-trade agreements. The article provides a detailed analysis, based on comparison with the treaty practice of the European Union and China, and highlights some particularities of this treaty.

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Photo by Toby Yang on Unsplash

Photo by Toby Yang on Unsplash

Why is it important?

The EU-China investment treaty includes unprecedented commitments on investment facilitation, and an important chapter on sustainable development. It is being hotly debated, particularly in the European Parliament. It is essential to understand how disputes would be resolved if it were signed, as the interpretation of the text and its effectiveness depend on it. The choices made here could also serve as a reference for other international negotiations on the same issues.