MIME-Version: 1.0 Content-Location: file:///C:/8C696742/ARTICLE188B.htm Content-Transfer-Encoding: quoted-printable Content-Type: text/html; charset="us-ascii" [ARTICLE 188B]

EXTERNAL ACTION:

EU INTERFERES IN UK FOREIGN DIRECT INVESTMENT,

TO BE ABSORBED BY EU COMMON COMMERCIAL POLICY<= /p>

[ARTICLE 188B]

 

 

AMENDMENT TO: Treaty of Lisbon amending the Treaty on European Union and t= he Treaty establishing the European Community (Lisbon, 13 December 2007)<= /span>

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Policy Area:

Treaty= on the Functioning of the European Union, Part Five, External Action by the Un= ion, Title II Common commercial policy, Article 188B

 

Amendment:

Clause  2,  page  1,  line  12,  after ‘excluding’, insert—

 

‘(i) Article 2, paragr= aphs 154 to 168, new Part Five TEC (TFEU) relating to external action by the European Union; and

 

(ii)’.

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Lisb= on Treaty Article:

156) A Title II "COMMON COMMERCIAL POLICY" sha= ll be inserted, taking over the heading of Title IX of Part 3.

157) An Article 188 B shall be inserted, with the wordin= g of Article 131; it shall be amended as follows:

(a) the first paragraph shall= be replaced by the following:

"By establishing a customs union in accordance with Articles 23 to 27, the Union shall contr= ibute, in the common interest, to the harmonious development of world trade, the p= rogressive abolition of restrictions on international trade and on foreign direct inve= stment, and the lowering of customs and other barriers."

(b) the second paragraph shal= l be deleted.

 

Consolidated Treaty Article(s):

“Article 131=

By establishing a customs union between themselves Member States aim to contribute, in the common interest, to the harmonious development of world trade, the progressive abolition of restrictions on in= ternational trade and the lowering of customs barriers.

The common commercial policy shall take into account the= favourable effect which the abolition of customs duti= es between Member States may have on the increase in the competitive strength = of undertakings in those States.”

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Expl= anation:

Whereas the present Article 131 (1) mentions that Member States will establish a “customs union between themselves̶= 1;, Article 188B states that the Union has e= stablished a customs union (and not the Member States).

 

Also, the present Article 131 (1) TEC has been am= ended in order to include foreign direct investment, with Article 188B referring = to the “progressive abolition of restriction= s on foreign direct investment.” Presently, foreign direct investment does not directl= y fall under the EU’s Common Commercial Policy. = Member States have competence over Foreign Direct Investment. The EU’s competence over this matter has been very limited. 

 

Investment agreements with third countries are presently the responsibility of Member States. There is a transfer of competences of foreign direct investment to the EU. The Lisbon Treaty brings foreign direct investment directly under the operation of the= EU’s Common Commercial Policy. Therefore, it wi= ll have serious implications on the investment policy instruments of Member States. The Lisbon Treaty strengthens the EU’s ability to conclude international investment agreements. =

 

Article 188B deletes a now redundant paragraph a= bout the virtues of the abolition of customs duties. The reference to = the abolition of internal customs duties is deleted.