Chrystia Freeland says review of Canada-EU deal is done

“Doing business outside of Canada can be a daunting experience for many Canadian exporters, especially for smaller companies”, Myers said.

The release adds, “This represents a clear break from the old Investor to State Dispute Settlement approach, and demonstrates the shared determination of the European Union and Canada to replace the current system with a new dispute settlement mechanism and move toward a permanent multilateral investment court”.

The new agreement, announced Monday as part of the completion of a broader review of the open issues in the trade deal, includes stronger language ensuring that provisions to protect investors don’t curtail governments’ rights to regulate. “We are going to feel it all in a real increase in prosperity and I’m confident this is going to become the landmark trade agreement”.

In Europe, the agreement still needs the approval of the EU’s national governments and the European Parliament. Critics anxious that companies would use the ad hoc private arbitration process to undermine legitimate health, safety and environmental laws.

The EU is negotiating a much larger free-trade deal with the United States, stoking fears in Europe that litigious American multinationals would use arbitration to undermine European laws and regulations. EU-Canada trade in goods was worth €59.1 billion ($64.4 billion) in 2014, while services commerce totaled €27.2 billion, according to the commission.

European officials, including the EU ambassador to Canada, have said they didn’t see ISDS as an impediment to the pact’s implementation.

But Toronto trade lawyer Lawrence Herman welcomed the changes, which he said bring “public legitimacy” to the investor arbitration regime and create a possible model for a massive U.S.-EU trade deal in the works. There would also be the right to appeal decisions.