IPOL | Policy Department for Citizens’ Rights and Constitutional Affairs
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PE 703.592
and obligations arising out of this Agreement shall continue in effect, and in case
the Parties are unable
to reach a joint decision pursuant to paragraph 4, an arbitral tribunal will deliver the solution.
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2.3.2.
Activation of the sunset clause based on a condition
In the field of international law conditional sunset clauses, which activation depends on a condition is
very common for the following reason. Given that the commencement of
international treaties
depends upon a condition, such as the ratification,
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sunset clauses are set to expire after a certain
period of time, which depends on the commencement date. Thus, the expiration date of the sunset
clause is not fixed explicitly, but is instead dependent upon the commencement date.
To put
it differently, when a treaty with an uncertain commencement day contains a sunset clause,
then it is inevitable for the Parties of the treaty to define the expiration date implicitly in combination
with the commencement of the treaty. For instance, the 1951 European Community of Steel and Coal
in Article 97 included a sunset clause prescribing that ‘This Treaty is concluded for a period of fifty years
from its entry into force.’
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The European Community of Steel and Coal was concluded for a period of
fifty years and, having entered into force on 23 July 1952, expired on 23 July 2002. Conditional sunset
clauses with uncertain activation dates are very common in investment treaties as the count down for
the automatic expiration of the treaty depends on the notification of withdrawal.
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