Being Virtuous and Prosperous: Sri's Conflicting Goals: Dialectics of Investor Protection Rules (Investor-State Dispute Settlement ISDS) in Canada-European Union: Comprehensive Economic and Trade Agreement (CE-CETA)-Trends, Tensions and Contradictions

Abstract

The title adopted from Richardson’s article captures a paradigm- a constructive entropy. It seeks to balance democratic deficit in promoting social emancipation, sustainable development and other ethical objectives with economic prosperity and development. This paper trains this ‘conflict’ to the most crucial dynamic of Canada’s external trade: CE-CETA as it includes investor-state dispute settlement (ISDS) mechanism to protect investors mimicking provisions in other International Investment Agreements (IIA). This paradox of advancing immovable force of SRI and promoting unstoppable force of trade (and investor’s) in CE-CETA is the nub of the issue. An attempt is made here to suggest management of the trends, tensions and contradictions between the two and balance by appropriate deference to core ideals of either- Buddha’s golden mean! This paper examines the issue in five parts. Part I walks through the introductory notions and principles of SRI as a paradigm and situating the ‘conflict’ within the CE-CETA with inclusion of ISDS. Part-II describes the global context of external trade and its architecture in the shape of IIAs: performance metrics of IIAs; Part-III discusses the jurisprudence specifically related to IIAs on investment between members of NAFTA and other EU investor-state arbitration (US-Ecuador BIT) and Unified Arab Agreement to representatively demonstrate and demystify phasmophobia created about ‘regulatory chill’ that critics canvass, both for Canada-EU: Comprehensive Economic Trade Agreement and US-EU-TTIP due to ISDS. Part-IV enumerates article-wise cutting edge issues in the CE-CETA text, demonstrating as to the extent of views of critics misplaced relating to ISDS: balancing of investor with the cherished and crucial sustainable goals and objectives for Canada. Part-IV, and in conclusion the paper deals with critique and discussion of the ISDS mechanism and possible workable solution without abandoning SRI goals in light of latest developments and initiatives of United nations Conference on trade and Development (UNCTAD).