Stop the ratification of CETA!
A joint statement by German and Canadian civil society
On the occasion of Chancellor Olaf Scholz’s trip to Canada and ahead of the German Bundestag’s announced ratification of the EU-Canada Trade and Investment Agreement (CETA), we – trade unions, human rights, environmental and other social organisations – express our continued opposition to CETA; CETA unilaterally protects corporate interests by undermining democratic decision-making and preventing effective policies to protect the climate, the environment and the social.
While most of the contractual elements of CETA have been applied provisionally in Europe and Canada for almost five years, this does not apply to the controversial provisions on investment protection. These provisions, as well as the planned creation of an Investment Court System (ICS), would give foreign investors the exclusive privilege of suing states in a private arbitration court rather than in national courts as soon as they see expected profits affected by legislation. This special jurisdiction for private investors would only be created if the parliaments of all EU Member States ratified CETA.
Like any other investor-state dispute settlement (ISDS) procedure, the planned special jurisdiction (ICS) poses an immense threat to sovereign policy-making by parliaments, for example in combating the climate crisis, raising social or environmental standards. ISDS mechanisms have also been used several times by Canadian companies to undermine democratically decided environmental and climate protection measures. For example, Canadian company Vermilion Energy threatened a billion-dollar ISDS lawsuit to block a 2017 French law designed to end fossil fuel production by 2040. This is just one example of how ISDS mechanisms have prevented and will continue to prevent effective climate action and the phasing out of fossil energy.
German governing parties have recently announced their intention to ratify CETA with an interpretative declaration on the investment protection chapter.
The undersigned organisations from Germany and Canada condemn this action and reiterate that there is no justification for the creation of a special jurisdiction for investor rights, with or without a declaration of interpretation, which would have little or no impact on future ISDS arbitration proceedings anyway.
The planned full ratification of CETA would also massively expand the dangerous and one-sided special rights for investors. Not only Canadian and European investors would be entitled to sue, but also US corporations with subsidiaries in Canada and Europe, for example.
In stark contrast to these enforceable rights, CETA does not impose any obligations on investors. The agreement also does not allow citizens, associations or trade unions to take legal action if a company violates environmental, labour, health, consumer protection or other regulations.
In an agreement between the EU and Canada, special courts for corporations are completely superfluous, because investors in both countries can assert their rights before national courts, just like anyone else. There is no reason why investors need a special and exclusive court – one that has often ruled in favour of corporations and against states in the past. This arbitration system is not only unnecessary in an agreement between friends, but also dangerous!
In the face of the climate and energy crisis, the full ratification of CETA would only put a stone in the way of a transformation of our economies and the phasing out of fossil fuels. The introduction of special rights for corporations would primarily benefit oil, gas and raw materials companies. If we want to quickly end our dependence on fossil fuels, the CETA special jurisdiction for investors must not be introduced under any circumstances.
Special rights for corporations are a relic of the 20th century that stands in the way of solving the most pressing problems of the 21st century. Instead, we need a paradigm shift towards a trade policy that puts the interests of people and the planet at the forefront. With the ratification of CETA, we would be far removed from this much-needed development.
We therefore call on those responsible to stop the CETA ratification process! No special rights for investors! Protect people and the climate, not corporate profits.
August of 2022
Stop the ratification of CETA!
A joint statement by German and Canadian civil society groups
On the occasion of German Chancellor Olaf Scholz’s visit to Canada, and ahead of the announced ratification of the EU-Canada Comprehensive Economic and Trade Agreement (CETA) by the German parliament, we Canadian and German civil society organisations express our continued opposition to CETA, which protects corporate interests at the expense of climate, environmental and social action and democratic decision-making.
While most parts of CETA have been provisionally applied in Europe and Canada for nearly five years, the agreement’s controversial investment protection provisions have not. These provisions, including the planned Investment Court System (ICS), would grant foreign investors the privilege to sue states before a private arbitration tribunal instead of in national courts when public policies affect their ability to profit. This chapter would come into effect only after full ratification of CETA in all EU member states.
ICS, just like any other investor-state dispute settlement (ISDS) process, poses an immense threat to parliaments’ sovereign policy-making, for example to tackle climate change or raise social or environmental protections. In practice, ISDS mechanisms have already been used many times to undermine democratically adopted environmental and climate protection measures. Canadian companies frequently use ISDS to challenge environmental legislation, such as when Canada-based Vermilion Energy threatened a billion dollar ISDS case to successfully block a 2017 French law to end fossil fuel extraction by 2040. This is just one example of how ISDS has and will continue to prevent real action to address climate change and end fossil fuel extraction.
Germany’s ruling coalition recently announced its intention to ratify CETA with minor “interpretative” notes to the agreement text. Civil society organisations from Germany and Canada condemn this process and reiterate that establishing a parallel justice system for corporations is fundamentally against the public interest. There is no justification for establishing an ICS with or without an interpretative statement that may have little or no impact on future ISDS arbitrations.
The planned full ratification of CETA would massively expand dangerous and unilateral investor privileges. Not only Canadian and European investors would be entitled to sue, but also, for example, U.S. corporations with stocks in Canada and in Europe.
In stark contrast to these highly enforceable rights, CETA does not foresee any obligations for investors. Neither does the agreement enable citizens, associations or trade union to bring a claim when a company violates environmental, labour, health, safety, or other rules.
The inclusion of special privileges for corporations in an agreement between the EU and Canada is also highly unnecessary. Investors in both countries can assert their rights in the courts, just like everyone else. There is no reason why investors need a special and exclusive court to self-one with a track record of ruling expansively in favour of investors.
In view of the climate crisis and energy insecurity, fully ratifying CETA will only put barriers in the way of our struggle to decarbonize our economies and power down the fossil fuel industry. The introduction of special privileges for corporations will primarily benefit oil, gas, and extractive companies. If we are to quickly end our reliance on fossil fuels, it is imperative that CETA’s Investment Court System not come into existence.
Special privileges for corporations are a relic of the 20th century that will only get in the way of addressing the most pressing problems of the 21st century. Instead, we need a paradigm shift towards trade policy that puts the interests of peoples and the planet first, and that gives top priority to climate, environmental, and social protections. Ratifying CETA will take us many steps further away from this much needed change.
We therefore call on decision-makers to stop the CETA ratification process! Stop special privileges for corporations! Protect people and climate, not corporate interests!
List of signatory organizations
Canada:
ATTAC-Québec ● Canadian Centre for Policy Alternatives ● Canadian Environmental Law Association ● Climate Action Network Canada ● The Council of Canadians ● Friends of the Earth Canada ● Greenpeace Canada ● Grand(m)others Act to Save the Planet ● MiningWatch Canada ● Trade Justice Network ● Trade Justice Prince Edward Island
Germany:
Attac Deutschland ● Berliner Wassertisch ● Bund für Umwelt und Naturschutz Deutschland e.V. ● BUND Naturschutz in Bayern e.V. ● Alliance for Fair World Trade Munich ● Alliance Stops TTIP & Co. Darmstadt.Dieburg ● Citizens' Initiative for Environmental Protection Offenburg e.V. ● German Environmental Aid e.V. ● German Cultural Council ● German Parity Welfare Association ● German Trade Union Confederation Hesse and Thuringia ● FIAN Germany ● Peace and Conflict Research Lothar Kreyssig Ecumenezentrum der Ev. Church ● Foodwatch ● Forum Environment and Development ● GEW Hessen ● Greenpeace e.V. ● Heidelberg Alliance for Just World Trade ● Initiative Blackrock-Tribunal ● Cologne Alliance for Just World Trade ● Konstanz Alliance for Just World Trade ● Local, Free Trade-critical Alliances and Initiatives in Germany ● Mannheim Alliance for Just World Trade ● NABU Germany ● Naturefriends Germany ● Network of Just World Trade ● Network of Just World Trade Baden-Württemberg ● Ortenauer Alliance for Just World Trade ● Ostalb against TTIP ● Power-Shift e.V. ● Solidarity Agriculture Germany ● Transparency International Germany ● Umweltinstitut München e.V. ● United Services Union ver.di ● Southern Hesse ● World Economy, Ecology & Development - WEED e.V. ● Wuppertaler Aktionbündnis against TIP and other free trade traps
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