On February 15, 2017, the European Parliament approved the Comprehensive Economic and Trade Agreement (CETA), signed by Canada and the European Union on October 30, 2016 after seven years of negotiations. The agreement was approved by 408 Members of the European Parliament and rejected by 254, with 33 abstentions.
As reported in ITN, this approval paves the way for provisional application, which is expected to occur in the next few months, once Canada also ratifies the agreement. Provisions on investment protection (including the Investment Court System [ICS]), portfolio investment and related provisions from the financial services chapter will only enter into force after national ratification by individual EU member states, a process that can take several years.
After the vote, European Commission President Jean-Claude Juncker said: “This progressive agreement is an opportunity to shape globalization together and influence the setting of global trade rules. The best example of this is the work that we are already doing with our Canadian friends to establish multilateral rules to deal with investment issues.”