BRINGING INVESTMENTS UNDER THE EU UMBRELLA

ABSTRACT With the recent developments in the field of international economic and trade law, the study of international investment arbitration has emerged as one of the most important and contemporary issues which has gained immense importance over time. The Treaty of Lisbon, 2009, altogether gave a different meaning to the idea and concept to the word ‘Investment’. Researchers came up with several interpretations regarding the Unions’ competence on Foreign Direct Investments. But as of now none have been a settled principle of law. The European Union since the inception of the Treaty of Lisbon, 2009 has somewhat emerged as a dominant figure in the international investment regime. One of the prime objectives of the Union is to enact legislation which tends towards common policies on trade, investments and regional development of the member states. This key feature of the Union has also been instrumental in its 2004 enlargement. But the question which arises here is whether the Union is usurping the powers of its member states to regulate matters relating to investments and especially to foreign direct investments. This paper will highlight and will focus on various aspects of international investments with special reference to the European Union. The Treaty of Lisbon, 2009 which amended the Treaty on the functioning of the European Union (TFEU) has now given the Union exclusive competence over matters relating to foreign direct investment. The EU has also expressed its concerns over its member states to terminate all its existing intra-EU Bilateral Investment Treatises (BIT). This has led to a plethora of disputes regarding the jurisdiction of the European Court of Justice over various arbitral tribunals that were previously agreed upon to have jurisdiction over such disputes by way of Bilateral Investment Treatises (BIT). Here the Vienna Convention on Law of Treatises, being the mother treaty of all international conventions and statutes also plays a crucial role in interpreting foreign direct investment with regard to the power vested with the European Union. This paper will highlight all such issues where there is a direct conflict with the provisions of the Vienna Convention on Law of Treatises and the existing intra-EU