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The International Settlement of Disputes Under the (Draft) CAI


The EU-China Comprehensive Agreement on Investment (CAI) establishes a sophisticated inter-State dispute settlement mechanism, directly inspired by the World Trade Organization (WTO) and adapted to a bilateral context, as is also found in recent preferential trade agreements. The novelty here lies in its extension to the field of investment entry and investment facilitation. Some variations in detail are also important. Because of partial material overlap, it is necessary to consider how choice of forum is organized between CAI procedures and those under WTO or other agreements, and to clarify the possible interplay with bilateral investment treaties previously concluded by China with EU Member States. The attention given in CAI to specific procedures for sustainable development and subsidies is also notable. In sum, the solutions adopted show a willingness on the part of the two powers to exert a certain influence on developments in international investment law, without upsetting the methods of dispute resolution.