On May 5, 2020, most Member States of the European Union signed a multilateral agreement for the termination of all bilateral investment treaties (“BITs”) in force between them.
The Agreement for the Termination of Bilateral Investment Treaties Between the Member States of the European Union (“Termination Agreement”) has been signed by 23 of the 27 EU Member States. Austria, Finland, Ireland, and Sweden abstained. Upon its entry into force for each EU Member State, the Termination Agreement will automatically terminate 130 bilateral investment treaties listed in an annexed chart as currently in force between the signatories (“intra-EU BITs”). The Termination Agreement also abrogates so-called ‘sunset clauses’ included in numerous intra-EU BITs, which extend the protections enjoyed by existing investments following the treaty’s termination.
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