Anatomy of investment agreements of the european union
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Transcript of Anatomy of investment agreements of the european union
ANATOMY OF INVESTMENT AGREEMENTS OF THE EUROPEAN UNION AND ITS MEMBER STATES
Magdalena Słok-WódkowskaFaculty of Law and Adminitration UW
Katarzyna ŚledziewskaFaculty of Economics Sciences UW
Introduction
• The aim of this study– to demonstrate how agreements concluded by the
EU countries have influenced the volume of stock of FDI.
1. An analysis of BIT and FTA&EIA agreements 2. An empirical study based on FDI stocks of the
European Union countries
Bilateral Trade Agreements (BIT)
• Concluded usually with two parties only– protection and promotion of foreign investements
• Broad definition on investments – all assets that are owned or controlled by an
investor directly or indirectly• Traditionally between developing countries
with developed– trend has changed recently
Free Trade Agreements & Economic Integration Agreements (FTA&EIA)
• Bilateral, multirateral, between groups of coutries
• Preferential trade liberalisation of trade in goods (FTA/CU) and services (EIA)
BIT
• Aim: protection of investments, mainly against expropretion
• Outside the scope of the WTO law
• Usually bilateral
• Traditionally concluded between parties whose mutual trust is limited
FTA&EIA
• Aim: liberalization of investing in partner territory,
• Regulated by the WTO, permitted by the Article V GATS
• Both multilateral and bilateral
• Requires mutual trust and cooperation between parties
EU BITs and RTAsBIT
• Concluded individually by EU MS (EU can since XII 2009)
• Since 1959 MS concluded 1326 BITs with non-EU parties
• Germany 120 BITs, • UK, France, Italy, Belgium, Netherlands
and Spain between 91 and 73, – majority of them with developing
countries
• CEE with developed partners (US, Canada, Japan)
• China and Turkey have BITs with all EU MS – except Ireland
RTA
• Concluded by the EEC/EC/EU
• 32 FTA, CU & EIA notified to the WTO
Number in BITs concluded by EU Member States, 1960-2012
19601963
19661969
19721975
19781981
19841987
19901993
19961999
20022005
20082011
0
10
20
30
40
50
60
70
80
90
100
?
• Is there any impact of BITs or EIAs on FDI outward stock?
• 4 groups of countries– BIT– FTA&EIA– EU– ROW
• Data: bilateral, MS EU FDI stock, abroad, Eurostat
EU’s FDI (outward stocks) in different country groups, in bln EUR
20002001
20022003
20042005
20062007
20082009
20102011
2012 -
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
UEROWBITFTA&EIA
Dynamics of growth of the EU’s outward FDI stocks, 2000 = 100
20002001
20022003
20042005
20062007
20082009
20102011
2012 -
100
200
300
400
500
600
UEROWBITFTA&EIA
Share in total EU FDI outward stock, in%, 2000-2012
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 -
5.00
10.00
15.00
20.00
25.00
30.00
BITFTA&EIA
Changes in significats of different coutry coup in EU FDI outward stock
ROW BIT FTA&EIA
(10.00)
-
10.00
20.00
30.00
40.00
50.00
20122012/00
The impact of BITs and RTAs on FDI
• Small but increasing– No FTA&EIA agreements with main partners
(United States, Brazil , Canada , Bermuda, Russia)– BITs yes (USA , Canada) but it’s recent
• What about the impact?