Sunset Clauses in International Law and their Consequences for eu law

sunset clauses are an almost universal feature in bilateral investment treaties
. An OECD 
working paper on international investment reported that ‘the vast majority of investment treaties (97% 
of the sample of 2,061 treaties) have clauses that extend some or all effects of the treaty beyond 
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See Model Agreements available at 
https://investmentpolicy.unctad.org/international-investment-agreements/model-
agreements
 (last date visited 31 August 2021). 
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Interestingly, the combination of a one-year sunset clause for the termination of the treaty in combination with a ten-
year sunset clauses for its extension to already made investments is very common across the world. See for instance a 
BIT between Colombia and United Arab Emirates. The Bilateral Agreement for the Promotion and Protection of 
Investments between the Government of the Republic of Colombia and the Government of United Arab Emirates. Article 
26 entitled ‘Final Provisions’ provides: ‘3.This Agreement shall remain in force for a ten (10) year period and shall be 
extended indefinitely thereafter. This Agreement may be denounced at any time by any of the Contracting Parties, by 
serving a twelve (12) month prior notice, sent through diplomatic channels. 4. With respect to investments admitted 
before the date on which the notice of termination of this Agreement becomes effective, the provisions of this 
Agreement shall remain in force for an additional term of ten (10) years from such a date. 
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Investment Protection Agreement between the European Union and its Member States, of the one part, and the 
Republic of Singapore of the other part (19 October 2018) Article 4.16 paragraph 3 ‘This Agreement shall be terminated 
six months after the notification under paragraph 2 without prejudice to Article 4.17 (Termination).’ 
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The combination of two sectional sunset clauses is very common in BITs. See also the more recent Canada Model BIT 
2021 available at 
https://investmentpolicy.unctad.org/international-investment-agreements/model-agreements
(last 
date accessed 31 August 2021). Article 57 paragraph 4 provides that ‘(…) The termination of this Agreement will be 
effective one year after the written notice of termination has been received by the other Party. In respect of investments 
or commitments to invest made prior to the date of termination of this Agreement, Articles 1 through 56, as well as 
paragraphs 1 and 2 of this Article, shall remain in force for 15 years.’ 
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Investment Protection Agreement between the European Union and its Member States, of the one part, and the 
Republic of Singapore of the other part (19 October 2018) Article 4.17. 
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For more details on Multilateral Investment Treaties, see Glen Kelley, 'Multilateral Investment Treaties: A Balanced 
Approach to Multinational Corporations' (2001) 39 Columbia Journal Transnational Law 483. 
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OECD, Draft Convention on the Protection of Private Property, 16 October 1967, C(67)102, Article 13 available at 
https://www.international-arbitration-attorney.com/wp-content/uploads/137-volume-5 .pdf (last date accessed 31 
August 2021).
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OECD, Multilateral Agreement on Investment [XII. Final Provisions, Withdrawal] available at 
https://www.oecd.org/investment/internationalinvestmentagreements/multilateralagreementoninvestment.htm
(last 
date accessed 31 August 2021).

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Sunset Clauses in International Law and their Consequences for EU Law 
PE 703.592 
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termination by a fixed period during which treaty protections still hold for investments that have been 
made – or approved or committed – prior to termination of the treaty. The shortest fixed survival period 
in the sample is 5 years and the longest is 25 years.’
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