Dispute resolution and supervision

1. Dispute resolution

CETA puts in place simplified and organized dispute resolution mechanisms such as
voluntary mediation, investment arbitration and expedited arbitration for situations
urgent.

The agreement aims to promote the transparency, efficiency and speed of the procedures for
resolution via innovative mechanisms such as the development of resolution procedures
of custom litigation for certain sectors (such as work, environment, services
and taxes).

2. Monitoring

Several committees and sub-committees are set up to oversee and facilitate implementation
and implementation of the Agreement, as well as to promote dialogue between the Parties on all
CETA topics.

Transparency provisions have also been drafted to ensure that each
Party will have access to information (such as laws and regulations) that may affect
the operability of the Agreement.

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CETA - 8. Dispute resolution and monitoring

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CETA encourages companies to take responsibility and respect certain social objectives,
economic and environmental such as worker protection and development
natural resources sustainably for the environment. The policies of
protection cannot be waived for the sole purpose of attracting investment.

Canada and the EU will both ensure that these objectives are met and commit to
sanction or remedy violations of the laws adopted relating thereto.

The objective is to develop activities opening the market responsibly and to
so as to promote coordination between trade, social and
environmental.

1. Trade and sustainable development

The parties agree to:

1. Encourage companies to adopt practices that promote economic, social and environmental objectives;
2. Establish standards and objectives for ecological performance and for the recognition of eco-labeling;
3. Analyze, monitor and monitor the impact that the implementation of the Agreement on Sustainable Development may have. CETA also contains provisions on fair trade in fish and forest products.

2. Trade and the environment

The Parties undertake to maintain a high level of environmental protection and to effectively implement their national environmental laws. CETA provides a broad definition of environmental law, covering all laws aimed at protecting the environment.

3. Trade and work

Canada and the EU are committed to ensuring that their national labor laws and policies comply with the 1998 Declaration on Fundamental Labor Principles and Rights of the International Labor Organization. The Agreement also contains a non-derogation clause, requiring that the Parties may neither weaken their social rights nor lower their labor standards in order to facilitate trade and investment.

For all complaints relating to one of these subjects, a dispute resolution mechanism will be available.

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1. Elimination of agricultural tariffs
2. Elimination of industrial tariffs
3. Services and labor mobility
4. Investment protection
5. Public procurement
CETA - 7. Sustainable development, environment and work
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CETA - 8. Dispute resolution and monitoring

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1. Pharmaceutical products

With CETA, Canada agrees to give more protection to products
pharmaceuticals protected by existing Canadian patents.

The period of protection offered by Canada will never exceed the set threshold of 2 years,
while the EU protection period threshold is 5 years. Products
approved pharmaceuticals on the Canadian market will not receive any
additional protection since no retroactivity was provided for in the Agreement.

The parties have, however, negotiated exceptions allowing the export of medicines
Canadian generics during the additional protection period.

2. Copyright, trademark and design rights

CETA includes a copyright system that follows the Modernization of
copyright of 2010, in accordance with the 2 treaties of 1996 of the World Organization
of Intellectual Property.

Although CETA allows copyright holders to enjoy their works, it
aims to promote technological progress and allows the use of technologies
innovative by service providers, businesses, students and teachers.

The Agreement includes various copyright provisions relating to the period of
protection, dissemination, protection of technical measures, protection of information
on rights regimes, as well as the liability of service providers
intermediaries.

Regarding trademarks and designs, Canada and the EU agree to make every effort
reasonable to comply with international agreements and standards promoting
trademark and industrial design procedures, including:

1. The Singapore Trademark Law Treaty;
2. The Protocol Relating to the Madrid Agreement Concerning the International Registration of Marks
3. The Geneva Act of the Hague Agreement Concerning the International Registration of Industrial Designs.

3. Geographical Indications (GI)

A geographical indication is a brand or product name, directly linked to its specific geographic origin.

Canada currently recognizes a number of GIs for wines and spirits
from the EU (such as Cognac and Bordeaux), but agrees to know 179 more
on food and on beer.

Canada has negotiated the protection of certain EU GIs provided they do not affect
not the possibility for producers to use specific terms which are customary
fluent in Canada, in English and French. Consequently, the following terms
continue to be freely used in Canada, in French and English only,
regardless of product origin: Orange Valencia, Black Forest ham, bacon
Tiroler, Parmesan, Bavarian beer, Munich beer.

The EU protects its own GIs on a number of cheeses such as Asiago Feta,
Fontina, Gorgonzola and Munster. However, this will not affect the possibility for
current users of these names to continue use. Future users will not be able to
use these names only if accompanied by expressions such as "like", "type",
"Style" and "imitation".

Canada reserves the right to use the common name of an animal breed or variety of
plant, such as the use of Kalamata on the packaging of this variety of olive.

Canadians also maintain their right to use parts of compound expressions:

1. Brie de Meaux will be protected, but Brie can be used alone;
2. Gouda Holland will be protected, but Gouda can be used alone;
3. Edam Holland will be protected, but Edam can be used alone;
4. Mortadella Bologna will be protected, but Mortadella or Bologna may be used separately. Canada has not agreed to protect the French expression walnuts and will not protect IG Budejovicke either, thereby avoiding any conflict with the Budweiser brand.

4. Plants and Plant Protection Products

CETA provides security in terms of data protection of plant protection products. The Parties have agreed to cooperate in order to promote and strengthen the protection of plant varieties on the basis of the International Convention for the Protection of New Varieties of Plants.

CETA retains the "farmers' privilege" to preserve and replant the seeds of a protected variety on their own land in accordance with Canadian federal plant variety protection law.

5. Implementation

Parties agree to ensure simple, fair, equitable and affordable implementation of intellectual property provisions through civil channels and through enhanced border measures, which should not, however, disrupt border trade .

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CETA's provisions for public market liberalization will allow for great
opening up to foreign competition on public markets in the territory of the Parties.

However, derogations apply regarding sensitive issues. The
governments retain the ability to introduce broad exclusions for
following reasons:

1. Reasons for national security and necessary measures for the protection of public morals, order and security;
2. Reasons related to human, animal and plant health;
3. Intellectual property;
4. Measures concerning the goods and services of disabled people, philanthropic institutions and work in penitentiary centers;
5. Aboriginal trade issues. Governments retain the right to give preference to their domestic enterprises when granting scholarships, loans, tax incentives, or in cases where the market is below a given threshold (see Sections 1. and 2. below regarding these thresholds). They are also flexible in determining technical considerations, social and environmental criteria, as well as in the form to choose for the market (open or limited).

1. The European Union

By granting Canada preferential access to the EU public market estimated at $2.7 trillion from the EU, the latter grants it the widest and most favorable access ever granted to a member of the G20. Canadian companies will have the opportunity to sell to the 28 EU member states, the European institutions (European Commission, European Parliament, and the Council of Europe), as well as the thousands of regional and local government entities within The union. For EU companies, this possibility applies for markets above a certain threshold (markets varying between 130,000 to 5 million special drawing rights). The EU market also covers a more comprehensive field than Canada in certain important sectors such as energy, institutions subject to public law, cultural industries and public transport.

Note that there are specific exclusions to the European Union public market,
especially with regard to:

1. At ports and airports;
2.  Broadcasting;
3. The postal sector;
4. Shipbuilding by public services, organizations subject to public law and local authorities.

2. Canada

Similarly, CETA allows EU businesses to compete in Canadian public markets at the federal, provincial and municipal levels; representing the most comprehensive and favorable access offered by Canada among all of its free trade agreements.

The Canadian threshold varies between $205,000 to $7.8 billion, and covers a wide range of sectors such as energy and public transit.

However, the market for certain sectors, such as those affecting public health and indigenous populations, is excluded from the scope of the Agreement.

Derogations also exist in sectors such as:

1. Agricultural products that are part of a food program;
2. Works of art and culture in Quebec and in municipalities, school boards, academic institutions in Canadian provinces and territories;
3. The co-production and airtime market (across Canada);
4. Research and development; Shipbuilding and repair (in some provinces);
5. Sensitive goods required by entities with a security mandate, such as the police force;
6. All major ports and airports; Some other regional exclusions for economic development.

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Investment protection is an important chapter in the Canada-EU agreement. In 2011, Canadian direct investment in the EU reached $ $172.5 trillion, and foreign direct investment from the EU in Canada reached $ $160.7 billion.

1. The definition of "investment" in CETA

CETA provides a very broad definition of what is an “investment”, covering “all
kinds of assets ”. Using the negative list method, a material must be expressly
excluded by the parties to escape the scope of the Agreement.

New sectors and services open to investment include
telecommunications, dredging activities, uranium investment for Canada and,
for the EU, information technology, research & development, and activities
mining.

However, not all foreign investment will be liberalized.

The Canadian federal government, for example, will maintain its ability to study
high value foreign investments to ensure they are able to produce
"net benefit" to Canada, or for reasons of national security. This
kind of ministerial decision is not subject to the dispute resolution provisions of
CETA.

EU investors are therefore not exempt, in certain cases, from the
Canadian government notification and decision-making regarding their
investments.

However, Canada has agreed to increase its review threshold to $1.5 billion (instead of $1
trillion in enterprise value). Also, Canada is committed to making investment in
less restrictive uranium (exemption from the condition of having to first find a
Canadian partner).

2. Investment protection rules

Canadian and EU investors will not be able to be treated less
advantageous than that granted to national investors or investors from other countries
strangers. This is provided for by the national treatment clause as well as the clause of the
most favored nation.

Investors and their investments receive fair and equitable treatment and
must be treated in a non-discriminatory manner. They are guaranteed, at a minimum, the
processing of the minimum standard.

CETA rules also provide protection against arbitrary acts on the part of governments and fix compensation for expropriation, which also affects indirect expropriation. However, it should be noted that governments can take non-discriminatory and good faith measures to protect public safety, health and the environment.

3. Investment dispute resolution mechanism

If investor rights are violated under CETA, the dispute can be resolved
via an arbitration procedure in the host state.

CETA seeks to promote investor-state dispute resolution through
transparent and efficient procedure. The consultations will be increased and the writings
submitted to the arbitral tribunal made public.

Also, as a party to the ICSID Convention, Canada adopts the arbitration rules
ICSID which provides a legal and structured basis for the resolution of Investor Disputes-
State (ISDS). According to these rules, a foreign company established locally can initiate a
request.

The ICSID court may make an award providing for the payment of damages or the
restitution of a property, as well as the payment of costs, but he cannot revoke the measure
of the host state which affected the investment of the foreign investor.

In order to avoid abuse of this arbitration procedure, provisions of the agreement will protect against frivolous requests.

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1. Elimination of agricultural tariffs
2. Elimination of industrial tariffs
3. Services and labor mobility
4. Investment protection
5. Public procurement
CETA – 4. Protection des investissements (FR)
CETA - 7. Sustainable development, environment and work
CETA - 8. Dispute resolution and monitoring

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