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 BITs. 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.