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Summaries of EU Legislation

Investment Protection Agreement between the EU and Singapore

 

SUMMARY OF:

Investment Protection Agreement between the EU and Singapore

Decision (EU) 2018/1676 on the signing on behalf of the EU of the Investment Protection Agreement between the EU and Singapore

WHAT IS THE AIM OF THE AGREEMENT AND THE DECISION?

The EU-Singapore Investment Protection Agreement (IPA) will ensure a high level of investment protection, while safeguarding the EU’s and Singapore’s rights to regulate and pursue legitimate public policy objectives, such as the protection of public health, safety and the environment.

The decision marks the signing, on behalf of the EU, of the investment protection agreement (IPA) with Singapore.

KEY POINTS

The IPA contains all the innovations of the EU’s new approach to investment protection and its enforcement mechanisms that are not present in the 12 existing bilateral investment treaties between Singapore and EU countries. A very important feature of the IPA is that it replaces and improves on the 12 existing bilateral investment treaties. The IPA has been negotiated at the same time as a free trade agreement.

In line with the objectives set by the negotiating directives, the European Commission has ensured that EU investors and their investments in Singapore will be granted fair and equitable treatment and not be discriminated against compared to Singaporean investments that are in like situations.

At the same time, the IPA protects EU investors and their investments in Singapore from expropriation*, unless it is:

  • for public purposes;
  • in accordance with due process of the law;
  • on a non-discriminatory basis; and
  • in return for payment of prompt, adequate and effective compensation according to a fair market value of the expropriated investment.

The IPA also sets up a modern and reformed investment dispute resolution mechanism. This ensures that investment protection rules are followed, and aims to strike a balance between protecting investors in a transparent manner and safeguarding the right of a State to regulate in order to pursue public policy objectives. The standing international and fully independent dispute resolution system, consisting of permanent First Instance and Appeal Tribunals, will conduct dispute settlement proceedings in a transparent and impartial manner.

DATE OF ENTRY INTO FORCE

The agreement was signed on 19 October 2018 and needs to be ratified by all the EU countries before entering into force.

BACKGROUND

See also:

KEY TERMS

Expropriation: the nationalisation of an investment through formal transfer of title or outright seizure.

MAIN DOCUMENTS

Investment Protection Agreement between the EU and Singapore

Council Decision (EU) 2018/1676 of 15 October 2018 on the signing, on behalf of the European Union, of the Investment Protection Agreement between the European Union and its Member States, of the one part, and the Republic of Singapore, of the other part (OJ L 279, 9.11.2018, pp. 1-2)

RELATED DOCUMENTS

Free Trade Agreement between the EU and the EU countries with Singapore

Council Decision (EU) 2018/1599 of 15 October 2018 on the signing, on behalf of the European Union, of the Free Trade Agreement between the European Union and the Republic of Singapore (OJ L 267, 25.10.2018, pp. 1-2)

last update 07.02.2019

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