The UK’s Post-Brexit Investment Policy: An Opportunity for New Design Choices

Abstract

Brexit presents an important opportunity for the UK to reimagine its investment policy. The UK formulated its independent investment policy, separate from the European Union’s, more than a decade ago. Since then, State practice relating to investment protection, facilitation, liberalisation and dispute resolution has changed. New model bilateral investment treaties (BITS) and other recent international investment agreements offer innovations. The UK can learn from these developments in formulating its post-Brexit investment policy. The UK’s recent policy documents suggest that its investment policy will closely track its historical practice. The UK has historically offered investment protection to foreign investors in its bit s. Investors have been allowed to initiate arbitration against States. However, the UK’s current negotiations with the EU suggest that investor protections may be more limited. This article begins by describing the UK’s existing trade agreements and recent trade practice as an EU Member State. It also describes the anticipated impact of Brexit on these arrangements and practices. The next section explains the likely direction of the UK’s future investment policy, as indicated in recent policy documents. The final section offers ideas for selected design choices that the UK could make in formulating its investment policy.