The EU proposal to reform the investor-to-state dispute settlement regarding foreign investment protection

The European Union (hereinafter: the EU) is today one of the most important participants in the global trade system. The EU today counts exactly 28 developed states which together represent the worlds largest economy and the world's prime exporter of manufactured goods and services.1 Not only is it the largest exporter but it is also the biggest importer for more than 80 countries, including the United States of America, China and Japan, the other worlds largest economies. Stating that, it is clear that due to its volume and complexity most of the international trade has to be governed by special sets of rules and international agreements.2 The different legal frameworks governing the global trade and investments operate on different levels e.g. on a global level such as the system established under the World Trade Organization (hereinafter: the WTO), regional levels or other only focused on specific bilateral relations. The EU itself started as an economic Union promoting free trade and a single internal market with the free movement of goods and services likewise. By promoting these economic freedoms and an open market the individual member states have benefit the most and became able to pursue common trade policies and advocate their own positions more effective than before. It is a consequence of simple math, as more and more countries joined, the leverage of the Union was heavier and heavier being more able to negotiate the pursued requirements and conditions to be met by the othe Party/Parties of a trade agreement.