Including investor-state in the Comprehensive Economic and Trade Agreement between Canada and the EU would, in my view, be a big deal in a number of ways (including the number of investments covered):
A controversial NAFTA provision that allows corporations to seek compensation from governments is likely to be included in any eventual free-trade deal with Europe, say sources close to the negotiations.
...
The shape of a final deal is still far from certain, but it appears the Europeans are increasingly warming up to a Canadian demand that closely resembles the Chapter 11 clause in the North American Free Trade Agreement.
Under the NAFTA clause, investors have received huge cash payments to compensate for government policies that hurt their business interests.
European negotiators were initially leery about a similar clause being included in a free-trade deal with Canada, according to one Canadian official who plays a senior role at the bargaining table.
Among the considerations that has helped change their mind, the official said, was the recent $130-million cheque Ottawa handed to newsprint giant AbitibiBowater (TSX:ABH) to settle a Chapter 11 claim.
"I think we'll see the inclusion of a Chapter 11-type clause," the official said at a recent briefing, which was conducted on condition of anonymity.
