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The Right to Regulate

  • Catharine Titi
Chapter
Part of the Studies in European Economic Law and Regulation book series (SEELR, volume 15)

Abstract

The right to regulate has emerged as a sine qua non of new generation investment agreements and that much is true of the Comprehensive Economic and Trade Agreement (CETA) between the EU and Canada. While Canada embraced the right to regulate in the early to mid-2000s, the right to regulate became a concern in the EU since the entry into force of the Treaty of Lisbon and the transfer of exclusive competence over foreign direct investment from the EU Member States to the Union. Since then, EU institutions repeatedly affirmed the need to include the right to regulate in new EU investment agreements and this policy was followed in the negotiation of CETA. The present chapter explores the right to regulate in CETA, focusing on exceptions that allow a party to digress from substantive investment obligations it has undertaken through other treaty provisions, but it also considers elements that without safeguarding a genuine right to regulate can enhance regulatory flexibility. Ultimately, it offers a tour d’horizon of this crucial concept with respect to this new megaregional.

Keywords

CETA Right to regulate Exceptions General exceptions Prudential carve-out EU investment policy Treaty interpretation Investment protection standards 

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Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  • Catharine Titi
    • 1
  1. 1.French National Centre for Scientific Research (CNRS)-CERSA, University Paris II Panthéon-AssasParisFrance

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