NGOs highlight shortcomings of investment protection rules in EU-Canada trade agreement (CETA)
BEUC NEWS - 29.06.2016
A new report warns that the trade agreement about to be ratified between Canada and the EU falls short of safeguarding democracy and the rule of law.
The report, issued jointly by BEUC and other NGOs working in the public interest, looks at the investment court system included in the trade agreement which allows foreign investors to launch court proceedings against governments that pass laws that harm profits. The report finds that including this kind of system will undermine consumer rights, and citizens at large, both in Canada and the EU.
Investors increasingly use these types of systems to challenge consumer, health, labour and environmental regulations. Even the threat of a claim, for instance on the sale tobacco can deter a government from adopting an ambitious law. EU Member States and the European Parliament will have to decide if they want to ratify the EU-Canada trade agreement (CETA) in the coming months. The report’s authors were BEUC, Transport & Environment, EPHA, EEB and Client Earth.
The full analysis is available here.
You can find out more in our position paper on CETA here.
Here are the key concerns BEUC has with investor court systems.