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This article provides a summary of the main legal questions pertaining to the current wording of Articles 206 and 207 of the Treaty on the Functioning of the European Union (TFEU), which deal with the inclusion of Foreign Direct Investments (FDI) within the scope of the EU Common Commercial policy (CCP). It firstly investigates the concept of capital movement as enshrined in the treaties and relevant EU legislation. Next, the article examines how the new reference to FDI within the scopes of the CCP affects the competence of the EU to conclude new Bilateral Investment Treaties (BITs) with third countries. Finally, the article briefly illustrates a recent proposal for a model EU BIT which would make certain areas of investment protection dependent on sustainable development, social and environmental protection and standards of Corporate Social Responsibility (CSR).

LEGAL FOUNDATIONS OF THE COMPETENCE OF THE EUROPEAN UNION ON FOREIGN DIRECT INVESTMENTS

in The Italian Yearbook of International Law Online

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