RECOGNISING the importance of strengthening their investment relations, in accordance with the objective of sustainable development in the economic, social and environmental dimensions, and of promoting investment between them, mindful of the needs of the business communities of each Party, in particular small and medium-sized enterprises, and of high levels of environmental and labour protection through relevant internationally recognised standards and international agreements, to which both Parties are party;
REAFFIRMING their commitment to the principles of sustainable development and transparency;
SEEKING to establish an investment framework based on mutually advantageous rules to govern investment between the Parties that would enhance the competitiveness of their economies, make their markets more efficient and vibrant, and ensure predictable legal environment for further expansion of investment between them; REAFFIRMING their commitment to the Charter of the United Nations and having regard to the principles articulated in the Universal Declaration of Human Rights;
[For agreements with third countries that have a status of 'EU (potential) candidate country': BEARING IN MIND that, in light of the judgment of the Court of Justice of the European Union in Achmea (C-284/16), this Agreement should be terminated in the event of the [XX country ] accession to the European Union;
Preambles typically define the purposes and considerations that led the parties to conclude an agreement, as well as the foundation of their past, present, and future relations in so far as it relates to the agreement. Preambles can play an important role in the interpretation of Bilateral Investment Agreements ('BIAs'): the motives and aims mentioned in a preamble can be used to help to understand and interpret the provisions contained in the operative part. The interpretative function of a preamble is recognised in the Vienna Convention on the Law of Treaties (1969) ('VCLT') which notes that, along with the text and other components of a treaty, the preamble may be relied upon for interpretative purposes (see Art. 31 (2) VCLT: 'The context for the purpose of the interpretation of a treaty shall comprise, in addition to the text, including its preamble and annexes...').
The preamble at hand enshrines the principles that permeate the EU investment policy: it stresses the contribution of foreign investment to a country's competitiveness and development, while highlighting that the pursuance of foreign investment should be in accordance with the objective and principles of sustainable development. Moreover, in case the BIA is to be concluded with a candidate or potential candidate State, the Preamble warns the counterparts that the BIA will need to be explicitly terminated at the moment of the (potential) candidate's accession to the EU, in line with the Court of Justice of the EU's ruling in Achmea (C-284/16), according to which investor-state arbitration clauses in international agreements that Member States concluded inter se are incompatible with EU law.