CETA provides several benefits and opportunities for EU investors in Canada including increased market access to both the EU and North American markets, enhanced investor protections, and eased investment restrictions such as raising the threshold for net benefit reviews. CETA also establishes guidelines for the mutual recognition of professional qualifications and easier temporary entry for EU business persons and professionals conducting business in Canada. Key elements of the investment chapter promote cross-Atlantic investment through limited market access restrictions, fair non-discriminatory treatment of EU investors, and protections against expropriation combined with access to an investment dispute settlement tribunal.

1. Benefits and Opportunities of CETA for EU Investors
 Increased Market Access – CETA offers companies operating in Canada guaranteed preferential market access to
both the EU and North American markets.
 Enhanced Investor Protection – CETA provides Canadian and EU investors with greater certainty, transparency and
protection for their investments.
 Easing of Investment Restrictions – With CETA’s entry into force, the net benefit review threshold under the
Investment Canada Act has been raised from C$600 million to C$1.5 billion.
 Advantage over Other Countries in the Americas – None of the other top destinations for EU investment in the
Americas (the US, Mexico, Brazil) have investment treaties in place with all 28 EU Member States.
At a Glance: CETA Chapter on Investment
CETA’s chapter on investment promotes cross-Atlantic investment by providing EU and Canadian investors greater
certainty, stability, transparency and protection for their investments in each other’s territory.
 Establishment of Investment – CETA encourages investment by limiting market access restrictions on investors.
- Canada and the EU may not restrict the ability of investors from the other Party to establish or expand in each
other’s territory, including through restrictions on size, foreign participation/control, legal entity (e.g. requirement
for a joint venture), or by linking establishment or expansion to performance requirements including those related to
export, import or domestic content.
 Non-Discriminatory Treatment – CETA ensures Canada and EU investors receive fair and non-discriminatory treatment.
- Canada and the EU must provide each other’s investors with treatment no less favourable than they provide to their
own investors and any third country investor in like situations.
 Investor Protections – Canada and the EU must approach covered investments in accordance with the customary
international law principles of fair and equitable treatment and full protection and security.
- Governments in either Party are prohibited from nationalizing or expropriating investments either directly or
indirectly, except when carried out for a public purpose, in accordance with due process of law, in a non-
discriminatory manner, and upon payment of prompt, adequate and effective compensation.*
- Parties are required to permit all transfers relating to a covered investment to be made without restriction or delay
and in a freely convertible currency.
- CETA provides investors with access to an independent investment dispute settlement tribunal to assess whether an
investor has suffered damage due to a violation of CETA’s investment chapter and, if so, to award fair
compensation.*
- The obligations in the investment chapter do not affect governments’ right to regulate in the pursuance of legitimate
policy objectives so long as such regulations are not discriminatory or wholly arbitrary in their application.

2. Temporary Entry
 CETA makes it easier for EU investors and professionals to conduct business within Canada.
- Canada has improved its temporary entry commitments for EU investors compared to those in the WTO General
Agreement on Trade in Services (GATS), increasing certainty and predictability, and reducing costs for short-term
travel of EU business persons to Canada.
- CETA improves access for EU investors who may be able to enter Canada as Key Personnel (as Business Visitors for
investment purposes, Investors or Intra-corporate transferees).
- Under CETA, Parties are prevented from limiting the number of Key Personnel entrants through numerical standards
or economic needs tests, and may also not require work permits for Business Visitors for investment purposes
(reservations and exceptions exist and are identified in Appendix B to the Temporary Entry Chapter of CETA).
Mutual Recognition of Professional Qualifications
 CETA establishes a framework for the mutual recognition of professional qualifications within Canada and the EU and
determines the general conditions and guidelines for the negotiation of profession-specific agreements.
For more details on how CETA benefits your company, contact a Trade Commissioner today.
tradecommissioner.gc.ca
* CETA was provisionally applied on 21 September 2017
The economically significant parts of the agreement came into force with provisional application along with
most investment-related elements, as described above. However, there are a few exceptions, including
some provisions of the Investment Chapter and the mechanism for the resolution of investment disputes.
These elements will enter into force upon full implementation, once CETA is ratified by all Member States of
the EU and necessary regional parliaments according to their respective domestic constitutional
requirements.
The current level of protection for investors will be maintained during the provisional application period
through existing Foreign Investment Promotion and Protection Agreements with several EU Member States.