CETA's Definition of the Fair and Equitable Treatment Standard: Toward a Guided and Constrained Interpretation

Abstract

The final text of the Comprehensive Economic and Trade Agreement (CETA) between Canada and the European Union was released on February 29, 2016. CETA sets out a more precise Fair and Equitable Treatment (FET) standard than was seen under past EU treaty practice. A list of state actions and behaviours constituting a breach of FET will be adopted. Efforts to give a more precise definition of FET are aimed at guiding and constraining the interpretation of this standard. These efforts are not limited to the issue of the FET standard and CETA, and may have broader implications. Greater precision may well become a key element of future investment protection agreement.