Dispute resolution mechanismsin EU free trade agreements

Abstract

Background. For the past five years, the European Union's trade policy has included the signing and implementation of «new generation»free trade agreements. The study of various aspects of regulation and settlement of disputes arising in the course of free trade agreements, the study of the application of dispute settlement mechanisms provided by the «new generation»of EU free trade agreements, aims to create a theoretical and legal basis and better understanding implementation of these legal relations by the specialists.
Analysis of recent research and publications has shown that despite the significant amount of research on this issue, there is still area for further scientific research, in particular on the latest trends in trade and economic and investment disputes settlement.
Theaim of the article is to single out and characterize the main problematic aspects of the application of dispute settlement mechanisms in the EU «new generation»free trade agreements.
Materials and methods. The normative basis of the study is the Association Agreement between Ukraine and the EU, the EU Agreement with the Southern African Customs Union on Economic Partnership, the Japan-EU Economic Partnership Agreement, the Comprehensive Economic and Trade Agreement between the EU and Canada, the Free Trade Agreement with South Korea and other EU free trade agreements. The methodological basis of the study is general scientific and special legal methods of cognition.
Results. Significant attention to resolving investment disputes in the «new generation»of EU free trade agreements is a reflection of the nature of these agreements, which aim to liberalize not only trade but also the movement of investments.
An unconditional trend in recent EU trade and investment agreements is the introduction of permanent arbitration mechanisms. Two-level, quasi-judicial mechanisms of this type are already included in the EU Free Trade Agreement with Vietnam, the EU-Singapore Investment Protection Agreement and the Comprehensive Economic and Trade Agreement between the EU and Canada.
For the most part, tribunals and arbitration groups under the EU's free trade agreements operate on an ad hoc basis. A characteristic feature of the Comprehensive Economic and Trade Agreement between the EU and Canada, the EU Free Trade Agreements with Singapore and Vietnam is the inclusion of certain provisions for the settlement of investment disputes between the investor and the host country.
The provisions of other EU free trade agreements (primarily with Mexico, Vietnam and Singapore) on the Investment Justice system are also in line with EU law. Under such conditions, the creation of the Investment Judicial System is highly probable.
Conclusion. EU free trade agreements contain a fairly detailed and clear settlement of dispute resolution methods that may arise during the implementation of such agreements. The results of the analysis of recent disputes and the procedure for resolving them within the framework of the mechanisms prescribed in the agreements indicate cases of non-compliance with the deadlines stipulated in the agreements, as well as low efficiency of such a mechanism as consultation, which necessitated the use of arbitration proceedings. A characteristic feature of the EU's «new generation»free trade agreements is the inclusion of investment aspects and a separate procedure for resolving investment disputes, which reflects the importance of this aspect of trade and economic relations, which is also reflected in plans to establish an Investment Judicial System and a Multilateral Investment Court.