CETA - 4. Investment protection (Fr)

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.

All articles on CETA

All articles on CETA
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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