Investment

Overview

The BCTT Investment Working Group, comprising a broad cross-section of companies that invest or seek to invest in the Transatlantic market, recognizes that foreign direct investment between the United States and European Union promotes economic opportunities, cross-border exports and sales, research and development, innovation and higher-paying jobs.  Both the United States and EU Member States have developed generally robust standards for the protection of such investment and the resolution of disputes between investors and host governments.  

The United States currently has in place Bilateral Investment Treaties with eight EU Member States [1] and, in April 2012, the United States and EU put forth “Shared Principles for International Investment” that reflect many of these standards.  U.S. and EU business groups have also weighed in on the importance of strong investment rules and key investment principles.[2] 

The TTIP should incorporate the strongest possible standards of non-discrimination between U.S. and EU investors to open and promote cross-border investment, core protections for investment and investors and investor-state and state-to-state dispute settlement to prevent and resolve disputes. The United States and EU should also establish mechanisms for transatlantic cooperation to promote the adoption of similarly strong investment openness, protection and enforcement provisions globally.

Why Investment Matters

The United States and EU already share a large and mutually beneficial cross-border investment relationship, with nearly $4 trillion in cross-border investments already.

As the United States and EU emphasized in their Shared Principles for International Investment, “creating and maintaining open and stable investment climates and policies . . . contribute to sustainable economic development and growth, job creation, increased productivity, technological innovation, and competitiveness.”[3]

In particular, U.S. investment overseas helps spur greater research and development, capital investment and job growth here at home. EU investment in the United States also creates jobs, enhances export potential and increases research and development and capital investment.

More broadly, strong investment outcomes on market access, protections and enforcement in the TTIP will send a strong message to the global economy about the importance of rule of law and the best ways to attract investment that is vital to promote economic growth and opportunities.

Objectives for the TTIP Negotiations

  • Provide broad coverage for all forms of investment and investors across the transatlantic economies.
  • Achieve strong provisions to open up transatlantic investment through provisions requiring the United States and EU to accord non-discriminatory treatment to investments and investors from each others’ jurisdiction for both new and expanded investments, with only limited exceptions (taken on a negative-list basis).
  • Include high-standard and strong provisions to protect investment and investors, including with respect to national treatment and most-favored nation treatment, the minimum standard of treatment (including fair and equitable treatment and full protection and security), compensation for direct and indirect expropriation, disciplines on performance requirements, transparency and regulatory frameworks related to investment, the treatment of senior boards of management and the free flow of capital.
  • Incorporate strong investor-state and state-to-state provisions that ensure full enforcement of the investment provisions through neutral and objective tribunals.
  • Establish mechanisms to promote the development of strong investment standards, protections and enforcement globally.

 


[1]Bulgaria, the Czech Republic, Estonia, Latvia, Lithuania, Poland Romania, and Slovakia.

 

[2] Letter from U.S. and EU Business Groups on Investment Principles (Nov. 16, 2011), accessed at http://www.investmentpolicycentral.com/sites/investmentpolicycentral.drupalgardens.com/files/Multi-association%20TEC%20Investment%20Principles%283%29.pdf

 

[3] Statement of the European Union and the United States on Shared Principle for Investment, April 12, 2012.

 

 

For more information about this working group, contact:

Stephen Schaefer, Emergency Committee for American Trade
sschaefer@ecattrade.com
+ (202) 659-5147 ext. 12

Linda Menghetti Dempsey, National Association of Manufacturers (NAM)
ldempsey@nam.org
+1 (202) 637-3144

Shaun Donnelly, United States Council for International Business (USCIB)
sdonnelly@uscib.org
+1 (202) 682-1221

Sean Heather, U.S. Chamber of Commerce
sheather@uschamber.com  
+1 (202) 463-5368