As such, the chapter largely corresponds with the Commission’s proposals for investment protection in TTIP and the investment protection chapter in the trade agreement with Canada (CETA). In certain respects the chapter is groundbreaking, with many innovative provisions specifically addressing criticisms raised in recent years.

Investment Chapter Largely Satisfies the Requirements of Industry

As in conventional agreements, investors are fundamentally protected against discrimination, unfair treatment, and expropriation. In that respect the chapter largely satisfies the requirements of industry. At the same time, the state’s right to regulate is underlined at numerous points. The chapter defines precisely what is understood by unfair and inequitable treatment and what the agreement defines as indirect expropriation. Unjustified cases are excluded. Probably the most far-reaching innovation is the introduction of a permanent investment court with tenured judges.

BDI is open to these innovations. From the business perspective, however, it is disadvantageous that companies involved in cases have no possibility to influence the composition of the tribunals. Moreover, numerous sectors are excluded from particular protections. Although improvements are necessary in certain aspects, the chapter can serve as a good model for future EU agreements.