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Who Else Benefits from CETA? Some Implications of Most-Favoured Nation Treatment

  • Lawrence Herman
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    Investors from US and Mexico and other third-party countries will benefit from the Canada-EU trade deal when it comes to investing in Canada, according to a report released today by the C.D. Howe Institute. In “Who Else Benefits from CETA? Some Implications of Most-Favoured Nation Treatment,” respected trade lawyer Lawrence L. Herman concludes that investors from countries that have preferential trade agreements with Canada will be entitled to the same preferential benefits as EU investors under the Canada-EU trade deal. While the recently negotiated trade agreement between Canada and the European Union (EU) will provide greater market access for exports of goods, services and investments from each party to the other, an intriguing question is whether the trade pact will have beneficial side effects for Canada’s other trading partners, by virtue of the “Most-Favoured Nation” rule of international trade law. This E-Brief finds that under the terms of Canada’s WTO membership and Foreign Investment Protection Agreements (FIPAs), the answer is no. However, with respect to investors and investments from the United States, Mexico, Peru, Chile and others with which Canada has preferential trade agreements (PTAs), the answer is yes.

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    File URL: http://www.cdhowe.org/pdf/e-brief_169.pdf
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    Paper provided by C.D. Howe Institute in its series e-briefs with number 169.

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    Date of creation: Dec 2013
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    Publication status: Published on the C.D. Howe Institute website, December 2013
    Handle: RePEc:cdh:ebrief:169
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