In the EU-China Comprehensive Agreement on Investment is expected to face intense resistance from some European lawmakers, while international unionists, who say the pact will do nothing to stop human rights abuses or protect labour rights in China, have vowed to ramp up pressure over the deal.
Categorical claims about the impact of trade deals on FDI are not supported by the evidence, which paints a nuanced and sometimes contradictory picture.
EU negotiators made some progress in important areas like market access, investment liberalization, and sustainable development. But can an incremental bilateral agreement like the CAI really govern economic relations with today’s China?
Some WTO Members are negotiating rules on facilitating investment. This is the draft consolidated text as of 4 February 2021.
The CAI will be judged a few years from now by its implementation and the concrete steps China takes to fulfill its promises. If European companies do not perceive any improvement, and China makes no progress on labour standards, the CAI might come to be viewed as another empty gesture.
Sources said that the government will have its own template for a BIT, which will replace the existing treaties with different countries.
The new EU-China Comprehensive Agreement on Investment will eventually be judged by its implementation and the concrete steps China takes to fulfill its promises. If European firms do not perceive any improvement, and China makes no progress on labor standards, the pact might come to represent an empty gesture.
The CAI will not transform China into an open investment regime nor will it provide new market access opportunities for most European businesses.
The EU will be able to strike an investment deal with India, but a full-blown free trade agreement will be a much harder sell, said Portugal’s foreign minister.
Cambodia and India have agreed to speed up negotiations on a number of key documents that will lead to the signing of two significant accords.
As its economy maintains recovery momentum, the country aims to attract foreign investors this year by encouraging investment in more industries, shortening negative lists for foreign investment, and further expanding the free-trade network.
The open statement notes that the agreement appears not to take into account the steep deterioration of rights and freedoms in the mainland.
The EU-China agreement-in-principle on investment includes language that would aim to prevent forced technology transfers, and describes a “positive list” approach for market access.
Potential gains not worth cost of overlooking ’blatant human rights violations’ in Xinjiang, Hong Kong, Tibet, and against Taiwan’: French senator
The government is stepping up efforts to persuade European countries to start bilateral investment agreement talks with Taiwan, as the conditions are ripe, Minister said
The EU-UK agreement contains limited protections for investors and no investor-state enforcement mechanism. Its dispute resolution mechanism is limited to a “WTO-like” state-to-state arbitration.
The agreement, which would roll back restrictions on investment, faces some opposition in Europe and objections from the Biden camp.
Though EU officials haven’t yet revealed the details, one senior EU diplomat said the agreement goes beyond anything Beijing has offered any foreign partner previously.
Officials say European Parliament could refuse to endorse deal over Beijing’s failure to commit to International Labour Organisation standards