The Comprehensive Agreement on Investment: between economic interests and human rights

Abstract

The conclusion in principle of the Comprehensive Agreement on Investment (CAI) between the European Union and China represents a crucial shift in the relations between the two countries. The aim of this agreement is to streamline and enhance the investment flows between two of the world’s largest economies. This thesis explores various aspects of the CAI, from its historical context and negotiation phase, the obstacles it has faced in light of alleged human rights violations, to its potential economic and geopolitical impacts. Chapter 1 establishes a foundational knowledge of Foreign Direct Investment (FDI) and Bilateral Investment Treaties (BITs), key points in the understanding of the nature of such agreement, and compares the provisions contained inside the Sino-European BITs with those written in the EU-Vietnam Free Trade Agreement. Chapter 2 focuses specifically on the CAI, from its history to its main provisions such as National Treatment, Most Favoured Nation, Market Access and Sustainable Development. Chapter 3 shifts the focus of this thesis to the main issue blocking the ratification process of this agreement, which are the EU sanctions on Chinese officials and one entity over alleged human rights violations against the Uyghur minority in Xinjiang, and the Chinese counter-sanctions. The chapter gives a general overview on the Uyghur minority and reports the reactions by the actors involved, and offers a brief overview of Human Rights inside EU. Chapter 4 explores the potential the CAI would have if it actually reached the ratification. Ultimately, the conclusions summarise the key points highlighted throughout this thesis and offer some thoughts about the Human Rights’ influence in negotiating this kind of agreement.