Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact firstname.lastname@example.org.
SOURCE C.D. Howe Institute
TORONTO, Dec. 19, 2013 /CNW/ - 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.
In the first of a series of briefings by the C.D. Howe Institute on the
Canada-EU Comprehensive Trade and Economic Agreement (CETA), Lawrence
Herman considers the question of whether the trade pact will have
beneficial side effects for Canada's other trading partners, in the
spirit of the "Most-Favoured Nation" rule of international trade law.
The author finds that under the terms of Canada's WTO membership and
numerous 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.
"The North American Free Trade Agreement does not expressly restrict
application of the Most-Favoured Nation rule with respect to
investments, so the rule applies," commented Lawrence Herman.
"Investors from the United States and Mexico must be treated on an
equal footing and receive the same preferences as EU investors or
investments under CETA; likewise, our other partners in PTAs, such as
Peru, Chile and Columbia."
Among the benefits of CETA for EU investors will be the raising of the
threshold for investment review under the Investment Canada Act from the current enterprise value level of $344 million to $1.5
billion, noted Herman. "The increased review threshold will apply
equally to investors from the US and Mexico as it does to investors
from the European Union."
"There is an important point to be made about uranium-sector
investments, which are being loosened up for EU investors," added
Herman. "Because of the MFN rule, US and Mexican investors will obtain
the same level of investment rights as EU investors in that sector.
This is an important aspect of the CETA that will entail potential
changes of significance in the Canadian uranium extraction and
The C. D. Howe Institute is an independent not-for-profit research
institute whose mission is to raise living standards by fostering
economically sound public policies. It is Canada's trusted source of
essential policy intelligence, distinguished by research that is
nonpartisan, evidence-based and subject to definitive expert review. It
is considered by many to be Canada's most influential think tank.
For the report go to: http://www.cdhowe.org/who-else-benefits-from-ceta-some-implications-of-most-favoured-nation-treatment/23882
©2012 PR Newswire. All Rights Reserved.