Canada And The EU: Update On CETA

Negotiations between Canada and the European Union (EU) on the Comprehensive Economic and Trade Agreement (CETA) began in 2009. In October 2013, an agreement was reached in principle and last month, it was reported that the legal review of CETA has finally been completed. Some reports indicate that CETA could come into effect next year.

In October, 2013 this blog commented on the possibility that CETA "may be good for business in M&A", specifically citing the proposed increase in the threshold for government review of foreign direct investment by EU companies in Canada as compared to other non-domestic companies. However, despite the opportunities that might arise in Canada as a result of CETA, Canadian companies looking to pursue opportunities in Europe will need to be mindful of recent developments.