The Comprehensive Economic and Trade Agreement (CETA) between the European Union (EU) and Canada has been provisionally applied since 2017, aiming to remove tariffs, reduce barriers and promote regulatory co-operation between these two economies. However, full ratification remains elusive, with some provisions, particularly around investment protection, pending implementation. In this context, CETA Implementation and Implications: Unravelling the Puzzle, edited by Robert G. Finbow, is an excellent exploration of the challenges and implications of this agreement. The book features essays from scholars across Europe and Canada, providing insights into CETA's structure, impact and related political obstacles.
One of the volume's strengths is its comprehensive nature. Stern and Weiß analyze the international regulatory bodies established under CETA, which facilitate co-operation but also have the power to create binding agreements. This delegation of authority raises concerns about democratic legitimacy, as unelected treaty bodies hold significant sway over regulations, creating a potential democratic deficit in sensitive areas like environmental protection and labour standards. This concern is especially pertinent as regulatory sovereignty is a critical issue in the ongoing political debates surrounding CETA.
The slow ratification process in EU member states also poses challenges. Stern and Weiß point out that CETA covers both EU and national competencies, requiring ratification by each EU legislature. Delays, particularly in countries like France, Italy and Ireland, have raised concerns that CETA may never be fully ratified. The volume identifies the case of Germany, where CETA was held up while awaiting approval by German courts. However, this case was resolved soon after the volume's publication, and the previously mentioned countries are proving to be more difficult arenas for CETA in the long term. These issues stem primarily from fears about national sovereignty and the power of international agreements to affect domestic regulations.
In addition to these legal challenges, Acconci, Cammilieri and van Rooy delve into the regulatory co-operation elements of CETA. Their chapters focus on the “right to regulate” in areas like public health and the environment, the impact of regulatory frameworks on domestic policy and the effects of regulatory integration. Acconci highlights how CETA allows both Canada and the EU to retain control over critical regulations, even as they work toward greater convergence. This balance of regulatory sovereignty and co-operation is central to CETA's success, but it also creates friction as both parties attempt to harmonize policies across different regulatory systems.
One of the most contentious aspects of CETA is public procurement. The agreement allows EU companies to bid for Canadian public contracts without discrimination, raising concerns among local governments and businesses. However, as the book notes, these concerns are likely overstated. Small and medium-sized enterprises (SMEs) face high costs when bidding on contracts across the Atlantic, and Canada's public procurement market was already relatively open before CETA. As such, the agreement is unlikely to dramatically alter the procurement landscape in Canada, at least in the short term.
Investment protection is another critical issue addressed in the book. Gantz compares CETA's investment provisions with those in other Canadian trade agreements, noting that CETA's approach to investor-state dispute settlement (ISDS) is more transparent and accountable. Whitsitt explores how CETA's investment court system could improve the legitimacy of ISDS, which has been criticized in the past. However, the full implementation of these investment provisions is contingent on CETA's ratification by all EU member states, and until this happens, it remains unclear whether these proposed improvements will come to fruition.
The book's final chapter focuses on CETA's potential to increase collaboration between Canada and the EU on global challenges like climate change, energy policy and labour standards. The contributors argue that regulatory co-operation within CETA could extend beyond trade, offering both economies a platform for deeper collaboration. However, as the volume notes, these opportunities remain theoretical, given the uncertainty surrounding CETA's future and the continued political resistance in some EU countries.
In conclusion, CETA Implementation and Implications: Unravelling the Puzzle is a valuable resource for those seeking to understand the complexities of CETA. The volume highlights both the strengths and weaknesses of the agreement, offering a balanced assessment of its impact and potential future trajectory. While some chapters have become slightly dated given the fast progression of CETA dynamics—particularly in their focus on ratification in specific countries—the volume remains relevant as the debate over CETA continues. Finbow's edited collection provides a critical framework for understanding the broader implications of EU–Canadian trade relations, making it an essential read for policymakers, scholars and anyone interested in international trade agreements.
