EU-China Agreement on Investment: Lessons for India from the Sino-European Model

Abstract

The European Union (EU) is the biggest source of outbound investment in the world and China is one of the top recipients of Foreign Direct Investment (FDI). The EU-China Comprehensive Agreement on Investment (CAI) is a unique international investment agreement that reflects the evolving economic relations of the EU and China and their strategic partnership. It also serves as one of the latest examples of the ever-evolving legal approach of the EU concerning international investment, particularly the dispute settlement mechanism in the CAI. This is why CAI might hold lessons for India, which also has a complex experience with its international investment agreements (IIAs), particularly the dispute settlement. Against this background, this article critically examines the dispute settlement provision of the CAI, its implications and lessons for India in the wake of renegotiation of the India-EU Broad-based Trade and Investment Agreement (BTIA). dispute settlement, international economic law, international investment agreements, European Union-China relations, Indian Model BIT, trade and investment law