How do all Canadians benefit from contracts

14.1.2017   

DE

Official Journal of the European Union

L 11/3


Joint interpretative tool for the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union and its member states

1. Preamble

a)

The European Union and its Member States and Canada, at the time of the signing of the Comprehensive Economic and Trade Agreement (CETA), establish the following Common Interpretative Tool.

b)

CETA embodies the joint commitment of Canada and the European Union and its member states for free and fair trade in a dynamic and future-oriented society. It is a modern and progressive trade agreement that will help rejuvenate trade and economic activity while promoting and protecting our common values ​​and positions regarding the role of government in society.

c)

CETA creates new trade and investment opportunities for Europeans and Canadians; the result it achieved reflects the strength and depth of the EU-Canada relationship and the core values ​​that are so important to both sides. In particular, we would like to point out that

being involved in the global economy is a source of prosperity for our citizens;

we are emphatically committed to free and fair trade, the benefits of which must be enjoyed by as broad a section of society as possible;

the main purpose of trade is to increase the well-being of citizens by promoting jobs and creating sustainable economic growth;

Canada and the European Union and its Member States recognize the importance of the right to regulate in the public interest and have expressed this in the agreement;

economic activity must be carried out within the framework of clear and transparent regulations established by the public authorities.

d)

The European Union and its Member States and Canada will therefore retain the ability to achieve the legitimate political goals set by their democratic institutions, such as public health, social services, public education, security, environmental protection, public morality, protection of privacy and data protection, and the promotion and protection of cultural Pursue diversity. CETA will not lower our respective standards and regulations in connection with food safety, product safety, consumer protection, health, environmental protection and occupational safety. Imported goods, service providers and investors must continue to meet national requirements, including rules and regulations. The European Union and its Member States and Canada reaffirm the preparedness commitments they have made under international conventions.

e)

This interpretative instrument, within the meaning of Article 31 of the Vienna Convention on the Law of Treaties, clearly and unambiguously expresses what Canada and the European Union and its Member States have agreed on with certain provisions of CETA that have been the subject of public debate and concern and how they have agreed these provisions interpret amicably. These include in particular the effects of CETA on the ability of governments to regulate in the public interest, as well as the provisions on investment protection and dispute settlement as well as on sustainable development, workers' rights and environmental protection.

2. Right to regulate

CETA preserves the ability of the European Union and its member states and Canada to implement their own laws and regulations that regulate economic activity in the public interest to achieve legitimate political goals in areas such as the protection and promotion of public health, social services, public education, and security To enact and apply environmental protection, public morality, social protection or consumer protection, protection of privacy and data protection as well as the promotion and protection of cultural diversity.

3. Regulatory cooperation

CETA offers Canada and the European Union and its member states a platform to facilitate cooperation between their regulators with the aim of achieving better quality regulation and more efficient use of administrative resources. This cooperation will be voluntary: regulators may cooperate voluntarily, but they are not obliged to do so, nor are they obliged to implement the results of their cooperation.

4. Public services

a)

The European Union and its Member States and Canada reaffirm and recognize the right of governments - at all levels - to provide and support the provision of services they consider to be public services, including in areas such as public health and education, social services and housing as well Extraction, purification and distribution of water.

b)

CETA does not prevent governments from defining and regulating the provision of these services in the public interest. CETA will not force governments to privatize services, nor will it prevent them from expanding the range of services they provide to the public.

c)

CETA will not prevent governments from providing public services previously provided by private service providers or from bringing services back under public control that governments have chosen to privatize. CETA does not mean that the award of a public service to private providers irrevocably makes that service part of the commercial sector.

5. Social security or social security

Canada and the European Union and its Member States can regulate the provision of public services such as social security and social security in the public interest. The European Union and its Member States and Canada confirm that mandatory social security and social security schemes are excluded from the Agreement under Article 13.2 (5) or on the basis of the reservations made by the European Union and its Member States and Canada in the field of social and security Health services are exempted from the liberalization obligations of the agreement.

6. Investment protection

a)

CETA contains modern investment regulations, according to which governments continue to have the right to regulate in the public interest, even if these regulations affect a foreign investment, while at the same time providing a high level of protection for investments and fair and transparent dispute resolution guaranteed. CETA will not result in foreign investors being favored over domestic investors. CETA does not privilege invocations of the investment jurisdiction established by the agreement. Investors can instead choose to seek the available legal remedies in domestic courts.

b)

CETA makes it clear that governments can change their laws, even if this has a negative impact on an investment or an investor's profit expectations. It also clarifies that any compensation to be paid to an investor will be determined by the court according to objective criteria and may not exceed the loss suffered by the investor.

c)

CETA contains clear investment protection standards, including fair and cheap treatment and expropriation, as well as clear guidelines for the arbitral tribunals on how these standards are to be applied.

d)

CETA requires that there must be a real connection with the economy of Canada or the economy of the European Union in order for a company to benefit from the agreement, in order to prevent third-country investors in Canada or the European Union from making claims against Canada or the European Union and its member states can assert. The European Union and Canada are required to periodically review the content of the Fair and Fair Treatment Commitment to ensure that it is consistent with their intentions (including those set out in this statement) and cannot be interpreted further than intended by them.

e)

In order to ensure that the courts respect the intentions of the contracting parties as set out in the agreement in all circumstances, CETA contains provisions whereby the contracting parties can establish binding interpretations. Canada and the European Union and its member states undertake to make use of these provisions to prevent or correct any misinterpretation of CETA by the courts.

f)

CETA deviates significantly from the traditional concept of resolving investment disputes and provides for the establishment of independent, impartial and permanent investment courts, guided by the principles of public legal systems in the European Union and its member states and in Canada, as well as the principles of international courts such as the International Court of Justice and the European Court of Human Rights. Accordingly, the members of these courts will be persons with the qualifications necessary to exercise the office of judges in their respective countries and who are appointed by the European Union and Canada for a specific term of office. The cases will be dealt with by three randomly appointed members. Strict ethical rules have been established for these individuals to ensure they are independent and impartial and to avoid any conflict of interest, bias, or the appearance of bias. The European Union and its member states and Canada have agreed to immediately start further work on a code of conduct, which should also ensure the impartiality of the members of the courts, the type and amount of their remuneration and the procedure for their selection. The common goal is to complete the relevant work by the entry into force of CETA.

G)

CETA is the first agreement that provides for an appeal procedure so that errors can be corrected and uniform case law is guaranteed by the courts of first instance.

H)

Canada and the European Union and its Member States undertake to continuously monitor the concrete application of all these investment rules, to rectify any deficits immediately if necessary and to look for ways to continuously improve the application of the rules over time.

i)

Thus, CETA means an important, radical change in investment regulations and dispute resolution. It forms the basis for multilateral efforts to further develop this new concept for the settlement of investment disputes at a multilateral investment court. The EU and Canada will work swiftly towards the establishment of the multilateral investment court. It should be set up as soon as a critical minimum number of participants has been reached and immediately replace bilateral systems like the one in CETA; it should be fully open to accession to any country that adheres to the principles on which the court is based.

7. Trade and Sustainable Development

a)

CETA reaffirms the long-term commitment of Canada and the European Union and its member states to sustainable development and aims to promote the contribution of trade to this goal.

b)

Accordingly, the CETA also includes binding commitments to protect workers' rights and the environment. The European Union and its Member States and Canada are keen to ensure that CETA delivers concrete results in these areas in order to maximize the benefits of the agreement for workers and the environment.

8. Occupational health and safety

a)

CETA obliges Canada and the European Union and its member states to improve their laws and strategies to ensure a high level of occupational health and safety. CETA stipulates that they cannot relax their labor laws to stimulate trade or attract investment, and governments can remedy the breach of this obligation, regardless of whether it advances investors' expectations or profits be negatively influenced. CETA does not change the rights of employees to negotiate, conclude and enforce collective agreements and to carry out collective action.

b)

CETA obliges the European Union and its member states and Canada to ratify and effectively implement the fundamental conventions of the International Labor Organization (ILO). Canada has ratified seven of the fundamental Conventions and has begun the process of ratifying the remaining Convention (Right to Organize and Collective Bargaining Convention, 1949 (No. 98)).

c)

CETA also creates a framework for Canada and the European Union and its member states to cooperate on trade-related labor law issues of common interest, including with the involvement of the ILO and through ongoing dialogue with civil society, to ensure that CETA trades in a Advances in a manner that benefits employees and supports occupational health and safety measures.

9. Environmental protection

a)

CETA obliges the European Union and its member states and Canada to guarantee and promote a high level of environmental protection with their laws and strategies and to further improve these laws and strategies and the level of protection associated with them.

b)

CETA expressly recognizes the right of Canada and the European Union and its member states to set their own environmental priorities, to determine the level of environmental protection themselves and to define or change their laws and strategies accordingly, taking into account their international obligations, including those from multilateral environmental agreements. At the same time, the European Union and its Member States and Canada agreed in CETA not to lower the level of environmental protection in order to incentivize trade or investment, and governments can remedy any breach of this obligation, regardless of whether this adversely affects the expectations or profits of investors.

c)

The CETA contains obligations with regard to the sustainable management of forests and sustainable fisheries and aquaculture management. It also includes commitments to cooperate on trade-related environmental issues of common concern such as climate change, where the implementation of the Paris Agreement will be an important shared responsibility for the European Union and its Member States and Canada.

10. Review and stakeholder consultation

a)

The obligations related to trade and sustainable development, trade and labor, and trade and the environment are subject to specific and binding assessment and review mechanisms. Canada and the European Union and its Member States are determined to use these mechanisms effectively throughout the life of the Agreement. They are also determined to initiate an early review of the relevant provisions, also with a view to the effective enforceability of the CETA provisions on trade and labor and trade and the environment.

b)

Stakeholders, including employers, trade unions, workers' and business associations and environmental groups, play an important role in supporting the effective implementation of CETA. The European Union and its Member States and Canada undertake to regularly seek stakeholder recommendations to assess the implementation of CETA. You are committed to their active involvement, also through the establishment of a civil society forum within the framework of CETA.

11. Water

CETA does not oblige Canada, the European Union and its member states to allow the commercial use of water if they do not wish to. CETA fully maintains its ability to decide how to use and protect water resources. Furthermore, CETA will not prevent a decision to allow the commercial use of water from being reversed.

12. Public procurement

CETA safeguards the ability of the procurement offices within the European Union and its member states and Canada to apply environmental, social and labor law criteria such as the obligation to comply with and adopt collective agreements in tendering procedures in accordance with their respective legal provisions. Canada and the European Union and its Member States will be able to use these procurement criteria in a way that is non-discriminatory and does not constitute an unnecessary barrier to international trade. You will be able to continue to do so within the framework of CETA.

13. Benefits for small and medium-sized businesses

CETA also brings benefits to small and medium-sized enterprises (SMEs) for whom it is an ongoing challenge to meet consumer cost demands. CETA solves this question with the following: almost all manufactured goods can be exported duty-free; border processing times are becoming shorter and the movement of goods cheaper, faster, more predictable and more efficient; the regulatory hurdles are reduced, in particular with the possibility of having products tested within the EU and certified according to Canadian standards and vice versa; facilitating the movement of service providers such as contractual service providers, freelancers and short-term business travelers, making it easier for SMEs to meet their customers and provide customer service; SME access to public contracts will be significantly expanded at central, sub-central and local government levels. Small farms will also benefit from easier access to markets and better outlets, including for special quality products.

14. Preferential treatment for the indigenous peoples of Canada

Canada has included exceptional and special provisions in CETA to ensure its ability to take measures to safeguard the rights and preferential treatment of indigenous peoples. Canada is committed to an active dialogue with its indigenous partners to ensure that their interests continue to be taken into account in the ongoing implementation of CETA.

Correlation table - Common interpretative tool compared to the CETA text

This table is intended to facilitate the interpretation of CETA by relating the parties' declaration of intent in this text to the corresponding CETA regulations. The following list of equivalents is intended to be as complete as possible but is not exhaustive.

Item in the Common Interpretative Tool

Reference in the CETA text

1.c) and d)

CETA preamble, Art. 5.4, Art. 6.1.5, Art. 21.2.1, Art. 21.2.2, Art. 22.1, Art. 23.3, Art. 23.4, Art. 24.3, Art. 24.4, Art. 24.5 and Art 28.3

CETA preamble, Art. 5.4, Art. 6.1.5, Art. 8.9, Appendix 8-A, Art. 21.2.1, Art. 21.2.2, Art. 22.1, Art. 23.3, Art. 23.4, Art. 24.3 , Art. 24.4, Art. 24.5 and Art. 28.3

3.

Regulatory cooperation

Art. 21.2.6

4.

Public services

Art. 8.2.2 (b), Art. 8.9, Art. 8.15, Art. 9.2.2 (a) (b) (f) and (g), Art. 9.7, Art. 13.2.5, Art. 13.10, Art.13.16, Art. 13.17, Art. 28.3, Appendix I reservations and Appendix II reservations

5.

Social security or social security

Art. 13.2.5, Art. 13.10, Art. 28.3 Appendix I reservations and Appendix II reservations

6. a)

Preamble, Art. 8.2.2 (b), Art. 8.36, Art. 8.6, Art. 8.9, Appendix 8-A, Art. 8.22.1 (f, g) and Art. 28.3

6. b)

Art. 8.9.1, 8.12, Appendix 8-A and Art. 8.39.3

6. c)

Art. 8.9, Art. 8.10, Art. 8.11, Art. 8.12 and Appendix 8-A

6. d)

Art. 8.1 and Art. 8.18.3,

6. e)

Art 8.31.3

6. f)

Art. 8.27, Art. 8.28, Art. 8.30 and Art. 8.44

6. g)

Art. 8.28

6. h)

Art. 8.31.3 and Art. 8.44.3

6. i)

Art. 8.29

7. b)

Trade and sustainable development

Art. 22.1, chapters 23 and 24

8. a)

Art. 23.2, Art. 23.3.1, Art. 23.4.2, Art. 23.4.3

8. b)

Art. 23.3.4

8. c)

Art. 23.7 and Art. 23.8

9. a)

Art. 24.3

9. b)

Art. 24.3 and Art. 24.5

9. c)

Art. 24.10, Art. 24.11 and Art. 24.12

10.

Review and consultation of stakeholders

10. a)

Art. 22.3.3, Art. 22.4, Art. 23.8, Art. 23.9, Art. 23.10 and Art. 23.11

10. b)

Art. 22.1.3, Art. 22.4.3, Art. 22.4.4, Art. 23.6, Art. 23.8.4, Art. 24.13, Art. 24.14, Art. 24.15, Art. 24.16 and Art. 24.7,

Art. 1.9

12.

Public procurement

Art. 19.9.6 and Art. 19.3.2

Appendix 2- A, Chapter 4, Chapter 6, Chapter 19, Chapter 20-Subsection C.

14.

Preferential treatment for the indigenous peoples of Canada

Art. 12.2.2 and applicable Canadian reservations