Source: Corporate Europe Observatory
The first in-depth analysis of the investment provisions of the Canadian-EU free trade agreement (CETA) has found that both the EU and Canada will be exposing themselves to greater future government policy constrain, and lengthy and expensive legal battles.
The report published today by 15 environmental NGOs, citizens’ groups and workers unions from both sides of the Atlantic called Trading Away Democracy can been downloaded in English, French and German. Executive summaries can be found in English, German, French, Spanish, Dutch, Danish, Finnish, Greek, Bulgarian, Czech, Polish and Estonian.
Trading Away Democracy shows that for Canada, the risks of being sued by banks, insurers and holding companies over financial regulations will increase significantly with CETA. Meanwhile, the EU and its member states particularly risk being sued by Canadian mining, oil and gas companies, which are already engaged in a number of controversial natural resource projects across Europe. The report also shows how US-headquartered companies through their Canadian subsidiaries will be able to use CETA to sue European governments, even if the EU eventually excludes or limits the investor rights within the proposed Transatlantic Trade and Investment Partnership (TTIP) currently under negotiation with the United States.The report argues that CETA grants even greater rights to foreign investors than the North American Free Trade Agreement (NAFTA) – increasing the risk that corporations will use CETA to constrain future government policy. It calls on the European Parliament and EU member states to reject the investment protection provision in CETA and all future treaties, including the controversial EU-US trade deal (TTIP).
We hope that this report will add to the already ongoing discussions about CETA and the EU’s approach to investment protection – in TTIP, CETA and beyond.