On January 29, 2021, Canada and the European Union (the “
EU”) took additional steps to establish the EU-Canada Comprehensive Economic and Trade Agreement (the “
CETA”)
[i] by adopting four decisions required to implement its new dispute resolution system. Pending ratification, the CETA will transform investment protection for Canadian companies and nationals investing in the EU, as well as EU companies and nationals investing in Canada.
Investor State Dispute Settlement under the CETA
To encourage foreign investors to invest overseas, international arbitration agreements like the CETA provide valuable guarantees to foreign investors to protect their investments and allow companies and individuals to bring arbitration claims directly against host governments when those guarantees are violated. Canada and the EU Member States are one step closer to finalizing the investment protection provisions of the CETA, which will broaden the number of EU countries offering r