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Commercial Integration between the European Union and Mexico

Multidisciplinary Studies

Edited By Gerhard Niedrist

The economic integration between the European Union and Mexico is of strategic significance to both parts. The EU is Mexico’s second most important trading partner and an integral piece in the diversification of its economic dependence from the United States. Besides, as Mexico is part of the North American Free Trade Agreement NAFTA and due to its geographical proximity to the United States, it has become of major geopolitical interest to the European Union. This multidisciplinary book analyzes the integration between Mexico and the European Union by economic, legal, and business management aspects, trying to contribute to a profound understanding of their relations.
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Investment Protection Standards in the Mexico – European Union Bilateral Investment Treaties: Fair and Equitable Treatment and Full Protection and Security

← 132 | 133 → Investment Protection Standards in the Mexico – European Union Bilateral Investment Treaties: Fair and Equitable Treatment and Full Protection and Security

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Gabriel Cavazos Villanueva & Magda Carolina Sánchez Navarro †

The purpose of this article is to analyze the Mexican experience with respect to the negotiation and implementation of the Bilateral Investment Treaties (BITs) concluded with countries of the European Union (EU). The analysis is focused on two of the most controversial standards in international investment law. On one hand, the obligation to provide “fair and equitable treatment” (FET) is part of the protection due to foreign direct investment (FDI) by host countries. In this context, this obligation refers to the “standard of treatment” often stated in most BITs and the investment chapters of some of the free trade agreements (FTA’s) concluded by Mexico. On the other hand, the obligation to provide “full protection and security” (FPS) is in many treaties linked with FET as part of the minimum standard of treatment.

The level of protection given to an investment in a foreign territory is a significant element to consider for international investors. The most common international practices for the protection of foreign investments are the execution of a BIT or the inclusion of an investment chapter in FTAs. The former type of international agreement is implemented between two States for the reciprocal protection of the investments made by investors of the other contracting Party in their territory.

Consequently, each BIT is different. Nonetheless, international law and the practice of international investment arbitration have identified a number of basic elements that a BIT must contain,...

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