Make Canada your gateway to the world
CETA’s chapter on investment promotes cross-Atlantic investment by providing EU and Canadian investors greater certainty, stability, transparency and protection for their investments in each other’s territory.
CETA’s Investment Provisions
CETA encourages investment by limiting market access restrictions on investors. Canada and the EU may not restrict the ability of investors from the other Party to establish or expand in each other’s territory, including through restrictions on size, foreign participation/control, legal entity (e.g. requirement for a joint venture), or by linking establishment or expansion to performance requirements including those related to export, import or domestic content.
CETA ensures Canada and EU investors receive fair and non-discriminatory treatment. Canada and the EU must provide each other’s investors with treatment no less favourable than they provide to their own investors and any third country investor in like situations.
- Canada and the EU must approach covered investments in accordance with the customary international law principles of fair and equitable treatment and full protection and security.
- Governments in either Party are prohibited from nationalizing or expropriating investments either directly or indirectly, except when carried out for a public purpose, in accordance with due process of law, in a non-discriminatory manner, and upon payment of prompt, adequate and effective compensation.
- Parties are required to permit all transfers relating to a covered investment to be made without restriction or delay and in a freely convertible currency.
- CETA provides investors with access to an independent investment dispute settlement tribunal to assess whether an investor has suffered damage due to a violation of CETA’s investment chapter and, if so, to award fair compensation.
- The obligations in the investment chapter do not affect governments’ right to regulate in the pursuance of legitimate policy objectives so long as such regulations are not discriminatory or wholly arbitrary in their application.
Benefits and opportunities of CETA for EU investors
Increased Market Access – CETA will offer companies operating in Canada guaranteed preferential market access to both the EU and North American markets.
- Enhanced Investor Protection – CETA will provide Canadian and EU investors with greater certainty, transparency and protection for their investments.
- Easing of Investment Restrictions – The net benefit review threshold under the Investment Canada Act will be raised from the current C$600 million to C$1.5 billion following CETA’s entry into force.
- Advantage over Other Countries in the Americas – None of the other top destinations for EU investment in the Americas (the US, Mexico, Brazil) have investment treaties in place with all 28 EU Member States
Why Invest in Canada?
- A welcoming business environment – Canada is the best country in the G-20 to do business.
- A strong growth record – Canada led all G-7 countries in economic growth over the past decade.
- Unparalleled market access – Once the Canada-EU Comprehensive Economic and Trade Agreement (CETA) comes into force, foreign investors in Canada will have assured preferential access to both NAFTA and the EU.
- A highly educated workforce – Canada’s workforce is the most highly educated among members of the OECD, with half of its working-age population having a tertiary level education.
- Low business tax costs – Total business tax costs in Canada are by far the lowest in the G-7 and 46 percent lower than those in the United States.
- Competitive R&D environment – Canada offers the lowest business costs in the G-7 for R&D-intensive sectors, with a 15.8 percent cost advantage over the United States.
- Financial stability – For the seventh consecutive year, the World Economic Forum has declared Canada’s banking system to be the soundest in the world.
- A great place to invest, work, and live – Canada is one of the most multicultural countries in the world, with world-class universities, a universal health care system and clean and friendly cities. The OECD’s Better Life Index shows Canada as best in the G-7 in terms of overall living conditions and quality of life.
Connect with one of our trade commissioners responsible for investment.
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