THE EFFECTS OF THE PRIMACY OF THE EU LAW ON THE INVESTORSTATE DISPUTE RESOLUTION MECHANISM

This paper highlights the existing conflict between EU law and the provisions contained in Bilateral Investment Treaties with respect to the arbitration clause. In the context of the post-Lisbon, the European Union has exclusive competence in the area of investment is the only entitled to conclude investment treaties with third countries. However, many Member States continue to maintain in force bilateral treaties signed pre-Lisbon and jurisdiction clauses which conflict with European law. This paper will analyze the case law and doctrine in the field and will try to find solutions to avoid possible bottlenecks that may arise when a Member State is in a position to choose between compliance with European law and the rest of its international obligations