Transatlantic Investment Treaty Protection

CEPS Special Report No. 102, March 2015

Univ. of Wisconsin Legal Studies Research Paper No. 1356

37 Pages Posted: 28 May 2015 Last revised: 18 Jun 2015

See all articles by Lauge N. Skovgaard Poulsen

Lauge N. Skovgaard Poulsen

University College London

Jonathan Bonnitcha

University of New South Wales

Jason W. Yackee

University of Wisconsin Law School

Date Written: March 12, 2015

Abstract

This paper presents an informal cost-benefit analysis of the inclusion of investment protection provisions, including investor-state arbitration, in an investment chapter in TTIP. The analysis is conducted from the perspective of the EU and its member states. It argues that there is little evidence to suggest that investor-state arbitration will provide the EU with meaningful benefits, such as increased foreign investment from the US. In contrast, investor-state arbitration may impose non-trivial costs, in the form of litigation expenses and reduced policy space. This is due to the huge volume of US investment that would be covered by the investment chapter, as well as the fact that an investment chapter would almost certainly give foreign investors greater rights than they currently enjoy under EU and member state law. We conclude that, from the perspective of the EU, the case for including investor-state arbitration in TTIP is weak. Although we do not conduct a cost-benefit analysis from the perspective of the US, such an analysis would likely raise similar issues.

Keywords: TTIP, investment protection, US, EU

Suggested Citation

Skovgaard Poulsen, Lauge N. and Bonnitcha, Jonathan and Yackee, Jason W., Transatlantic Investment Treaty Protection (March 12, 2015). CEPS Special Report No. 102, March 2015; Univ. of Wisconsin Legal Studies Research Paper No. 1356. Available at SSRN: https://ssrn.com/abstract=2611053

Lauge N. Skovgaard Poulsen (Contact Author)

University College London ( email )

Gower Street
London, WC1E 6BT
United Kingdom

Jonathan Bonnitcha

University of New South Wales ( email )

Kensington
High St
Sydney, NSW 2052
Australia

Jason W. Yackee

University of Wisconsin Law School ( email )

975 Bascom Mall
Madison, WI 53706
United States

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