Reconciling investment court with EU law
It is the view of the German federal government that the upcoming ratification of the free trade and investment protection agreement between the EU and Canada is reconcilable with EU law.
The Court of Justice in Luxembourg has set out in a report the conditions under which the EU could be an international court. The EU Commission has directed this specifically at the Investment Court contained in CETA. According to the model proposed by the EU Commission, there would be explicit provisions regarding the impartiality of judges on the Investment Court. Therefore, it differs significantly from an arbitration court in which the impartiality of the judges is not excluded. Appointment of arbitrators by the parties could lead to a lawyer acting as an arbitrator in one proceeding and in a parallel proceeding as lawyer for an investor. However, the measures in place in CETA would eliminate this risk, particularly through the proposal of appointing judges for a certain period and the allocation of cases on a rotating basis.