The final version of CETA, the agreement between EU and Canada, is adopting the new EU approach with regard to investments - EU Trade Commissioner Cecilia Malmström and the Canadian Minister of International Trade, Chrystia Freeland let it be known this week.

This new approach, which would be consistent with the TTIP proposal by the EU from November 2015, is already an integral part of the recently completed Free Trade Agreement between the EU and Vietnam.

According to the Commission, “this represents a clear break from the old Investor to State Dispute Settlement (ISDS) approach and demonstrates the shared determination of the EU and Canada to replace the current ISDS system with a new dispute settlement mechanism and move towards establishing a permanent multilateral investment court.“

Critics expose the so-called reform agenda of the Commission regarding the International Court of Justice, as the independence of the arbitrators still has to be questioned and the main criticism – privileged rights for foreign investors – remains. Countries are still obliged to high compensation payments if investors feel they have been treated unfairly due to new regulations. There is no reason in highly developed judicial system for the necessity of Investment protection standards, whatever they will be called in the end.

Further information:

AK Position Paper “Investment Court System“ ICS draft of the European Commission on Chapter II – Investments in TTIP

AK and ÖGB Consultation contribution to ISDS

AK Position Paper EU Transatlantic Trade and Investment Partnership TTIP and CETA

Joint Statement of EU Trade Commissioner Cecilia Malmström and the Minister of International Trade of Canada Chrystia Freeland

Press release of the Commission:

CETA Text

Factsheet of the Commission

Summary of the final negotiating results

Investment provisions in CETA

CEO: Zombie ISDS Synopsis (long recension)