The EU Myanmar Investment Protection Agreement: What You Need to Know
The European Union and Myanmar recently signed an Investment Protection Agreement (IPA) which aims to promote and protect investments made by European companies in Myanmar. The agreement is expected to provide legal certainty and a transparent framework for European investors in the country.
The IPA comes at a time when Myanmar is actively seeking foreign investment to support its economic growth and transition to democracy. The country has been facing political instability and conflicts in some regions, but there are also promising opportunities for investment in sectors such as energy, infrastructure, agriculture, and tourism.
The EU is one of the largest investors in Myanmar, with about €700 million in foreign direct investment (FDI) in the country in 2020. The IPA is seen as a means to enhance the EU`s presence and influence in Myanmar`s economy and society, while also improving the business climate and protecting the interests of European companies.
So what are the key features of the EU Myanmar Investment Protection Agreement?
– Protection of investments: The IPA provides a high level of protection for European investments in Myanmar, including the guarantee of fair and equitable treatment, full protection and security, and the prohibition of expropriation without compensation. Investors can also resort to international arbitration to settle disputes with the host state.
– Transparency and predictability: The IPA requires Myanmar to provide a transparent and predictable legal framework for investment, including the respect of international standards and obligations, and the establishment of an Investment Committee to monitor and facilitate investment activities.
– Market access: The IPA aims to promote and facilitate market access for European investors in Myanmar, by removing barriers to trade and investment, and ensuring non-discriminatory treatment and equal opportunities for foreign and domestic investors.
– Social and environmental standards: The IPA includes provisions on social and environmental standards, which require investors to comply with applicable laws and regulations, and to respect human rights, labor standards, and environmental protection. The IPA also encourages dialogue and cooperation between the parties on sustainable development and corporate social responsibility.
The EU Myanmar Investment Protection Agreement is expected to have a positive impact on the investment climate in Myanmar, and to contribute to the country`s economic and social development. However, it also raises concerns about the potential risks and challenges for sustainable and responsible investment in Myanmar, given the current political and human rights situation in the country.
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