Much is being said about Brexit in the past days. But what would a potential Brexit mean for investment protection in the EU?
The main advantage of Brexit would be that the post-Brexit UK could maintain its 100+ bilateral investment treaties (BITs) with the current dispute arbitration rules in place. This also applies to the so-called intra-EU BITs. From an investor-perspective this would be a re-assuring development. Moreover, arbitration disputes would take place without the interferences of the European Commission and the European Court of Justice, which are arguably biased against investors.
Moreover, as far as the proposed reforms for an investment court system (ICS) are concerned, the post-Brexit UK will not necessarily have to adopt them. In fact, there has never been much enthusiasm for this ICS from the UK in the first place. Again, this would be another important re-assuring factor for investors who would maintain access to the current system of international arbitration, which is a tested and well-functioning system that is appreciated by investors around the world.
So, in conclusion, there are some potentially positive effects of Brexit for investors. Generally, the UK BITs provide a high level of investment protection, which would continue to be available to investors also in the future.