EU, Canada Devise Rules to Make Investment Dispute Resolution Easier Under Trade Deal
The European Commission and Canada on April 26 proposed new rules to help small and medium-sized enterprises take advantage of the investment dispute resolution mechanism under the EU-Canada Comprehensive Economic and Trade Agreement, the commission's Directorate-General for Trade announced.
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The rules introduce an "expedited procedure for dispute resolution under CETA," which provides preferential access to enterprises under a "certain level." These cases will be able to be heard by "a one-member -- instead of a three-member -- tribunal," and "timelines will be shorter." The rules also include "built-in protections for the State (as the defendant), to ensure that the expedited procedure is used by those who need it most and to avoid abuse," the commission said.
The rules now go to the European Council for approval and will need formal adoption by the CETA Joint Committee once they clear the internal procedures with the EU and Canada. The rules will take effect "once the agreement has been fully ratified."