Changes to Finland's bilateral investment protection agreements

Finland has 67 valid bilateral investment protection agreements. Some of the countries that are contracting parties to these agreements are reviewing their policy on foreign investments.

India, which is an important trading partner, has terminated nearly all its bilateral investment protection agreements. India terminated the bilateral investment agreement between Finland and India on 1 August 2018, but in accordance with the text of the agreement, it will be in force until 31 July 2019. After that, investments concluded prior to that date will receive protection under the agreement for 15 years. The free trade negotiations between the European Union and India, which cover protection of investments, have not progressed.

Previously, Ecuador terminated its bilateral investment protection agreement with Finland in 2010, but investments made before 16 December 2011 will be in force until 15 December 2021. Ecuador terminated not only its investment protection agreement with Finland but also its corresponding agreements with other countries.

The Court of Justice of the European Union issued its judgement in the so-called Achmea case in March 2018. It concerned a preliminary ruling made by the Federal Court of Justice of Germany on whether an arbitration clause, included in a bilateral investment protection agreement applicable between two EU Member States (the Netherlands and Slovakia), which was made before the other contracting party had joined the European Union, is in conflict with the Treaty on the Functioning of the European Union (TFEU). According to the Court of Justice, Articles 267 and 322 TFEU should be interpreted so that they do not preclude the application of a provision in a bilateral investment protection agreement between Member States of the European Union.

Finland has concluded bilateral investment protection agreements that contain a similar arbitration clause with 11 EU Member States: Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, Slovakia and Slovenia.

Inquiries: Maria Pohjanpalo, Commercial Counsellor, Department for External Economic Relations, Trade Policy Unit, tel. +358 295 351 277 and Petteri Kotilainen, Counsellor, tel. + 358 +358,295 351,719