The CETA Ratification Saga: The Demise of ISDS in EU Trade Agreements?

20 Pages Posted: 27 May 2017

See all articles by David A. Gantz

David A. Gantz

Univ. Of Arizona College of Law; Mexico Center, Baker Institute

Date Written: May 25, 2017


This article focuses on the frustrating, time-consuming and difficult legal and political process through which the Comprehensive Economic and Trade Agreement (CETA) is being put into force in the European Union. The CETA approach includes approval of the agreements initially by the EU Commission, EU Council and EU Parliament, but also unanimously by the approximately 38 national and regional EU Member State Parliaments. That unanimity requirement has raised doubts as to whether any future controversial trade agreement — and if CETA is controversial so much more so are all others — could effectively be put into force by the EU, whether or not it contains ISDS mechanisms. Fortunately, the EU Court of Justice decision on similar issues arising from the EU-Singapore FTA promises a more streamlined approval process within the EU alone for future trade agreements. However, there are two caveats: a) any ISDS and related investment provisions should be treated in a distinct agreement for separate EU and Member State approval; and b) notwithstanding the EU’s legal powers post-Court of Justice decision to conclude FTAs on its exclusive authority, EU politics may make it difficult or impossible for the EU to do so.

Keywords: International Trade; European Union; CETA; Investor-State Dispute Settlement

Suggested Citation

Gantz, David A., The CETA Ratification Saga: The Demise of ISDS in EU Trade Agreements? (May 25, 2017). Arizona Legal Studies Discussion Paper No. 17-10, Available at SSRN: or

David A. Gantz (Contact Author)

Univ. Of Arizona College of Law ( email )

P.O. Box 210176
Rogers College of Law
Tucson, AZ 85721-0176
United States
520-490-3004 (Phone)

Mexico Center, Baker Institute ( email )

6100 Main Street, MS-40
Houston, TX 77005
United States
520-490-3004 (Phone)

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