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ARTICLE · 05 JULY 2019

The ISDS Mechanism Provided For Under The CETA Is Compatible With EU Law

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On March 6, 2018, the CJEU ruled in the so-called Achmea case and held that a clause of a BIT allowing an investor from the EU to initiate arbitration proceedings against an EU Member State was incompatible with EU law.

FranceLitigation, Mediation & Arbitration
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Soulier Avocats

While the Transatlantic Trade and Investment Partnership ("TTIP", also known as the Trans-Atlantic Free Trade Agreement or "TAFTA" ) has been abandoned, the Court of Justice of the European Union ("CJEU"), in an opinion dated April 30, 2019, ruled on the compatibility with EU law of the mechanism for the settlement of disputes provided for under the Comprehensive Economic and Trade Agreement ("CETA") entered into between Canada and the European Union.

On March 6, 2018, the CJEU ruled in the so-called Achmea case and held that a clause of a Bilateral Investment Treaty ("BIT") allowing an investor from the European Union to initiate arbitration proceedings against an EU Member State was incompatible with EU law1. In this context, there was every reason to believe that such decision would be applied to the mechanism for the settlement of disputes between investors and States provided for under the CETA (the mechanism is called Investor-State Dispute Settlement,

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