The Growing Pains of Actorness: The European Union in Global Investment Governance

Citation:

Broude, Tomer, and Yoram Z. Haftel. 2022. “The Growing Pains of Actorness: The European Union in Global Investment Governance”. Journal of European Integration 44 (5) : 749-768.

Abstract:

 

 

 

 

ABSTRACT

Foreign investment is governed by thousands of international investment agreements (IIAs), many of which include investor-state dispute settlement (ISDS) provisions. Member states have played a prominent role in the evolution and shape of this decentralized global investment regime. The EU itself has become an actor in this regime since gaining competence in this area in 2009. This article examines the manners by which investment policies of the EU and its member states have evolved over time and their implications for the EU’s actorness. Using, first, the concept and metric of state regulatory space, we show that the EU is more enthusiastic than its member states about reforms, but that a lack of internal cohesiveness and a competitive external environment limit its actorness. Second, drawing on recent discussions on ISDS reforms, we highlight the increasing ability of the EU to speak up with one voice on global investment rules.

 

Foreign investment is governed by thousands of international investment agreements (IIAs), many of which include investor-state dispute settlement (ISDS) provisions. Member states have played a prominent role in the evolution and shape of this decentralized global investment regime. The EU itself has become a player in this regime since gaining competency in this area in 2009. This article examines the manners by which investment policies of the EU and its member states have evolved over time and their implications for the EU’s actorness. Using, first, the concept and metric of state regulatory space, we show that the EU is more enthusiastic than its member states about reforms, but that a lack of internal cohesiveness and a competitive external environment limit its actorness. Second, drawing on recent discussions of ISDS reforms, we highlight the increasing ability of the EU to speak up with one voice on global investment rules.  

 

Publisher's Version

Last updated on 08/14/2022