Proposal for a COUNCIL DECISION on the conclusion of the Investment Protection Agreement between the European Union and its Member States, of the one part, and the Socialist Republic of Viet Nam, of the other part
1. This Explanatory Memorandum (EM) concerns the proposals for Council Decisions on the signature and conclusion of the EU-Vietnam Investment Protection Agreement (EUVIPA). These Council Decisions respectively constitute the legal instruments authorising the Signing and Conclusion of the agreement on behalf of the European Union (EU). The EUVIPA is a mixed agreement, to which both the EU and its Member States are parties.
2. The European Commission has not, at this time, made a proposal to provisionally apply the agreement (that is, to provisionally apply the agreement or elements thereof pending the completion of ratification procedures by all parties). To provisionally apply the Commission would need to put forward a further proposal for a Council Decision to provisionally apply the agreement, as required by article 218(5) TFEU. That Decision could potentially be adopted by the Council under qualified majority voting (QMV), although we anticipate the Commission would want consensus for provisional application and Member States are not expected to seek provisional application. Although some investment provisions in CETA have been provisionally applied, these are only those that are within EU exclusive competence and, inter alia, ICS provisions have been excluded.
3. Prior to its entry into force the agreement must be ratified by all EU Member States, through their own domestic procedures, and by Vietnam. The current proposals do not concern the agreement’s provisional application nor its entry into force; neither do they prejudge the outcome of Member States’ own ratification procedures.