Canada’s Prime Minister Justin Trudeau during the signing ceremony of the EU-Canada trade deal (Thierry MONASSE)

Luxembourg (AFP) – Europe’s top court ruled Tuesday that a complaints resolution mechanism in the EU-Canada trade deal is legal, a blow to campaigners who argue it gives too much power to corporations.

The “Investment Court System”, which is also part of Europe’s trade agreements with Singapore and Vietnam, will allow companies to sue governments if they feel their commercial rights are infringed.

But some environmentalists, social activists and free trade-sceptics argue it does not give citizens a balancing right to take legal action if corporations break the rules.

In 2016, Belgium — under pressure from left-wing opposition leaders from the French-speaking region of Wallonia — had asked the European Court of Justice for an opinion on the legality of the mechanism.

On Tuesday, the court ruled “there is no effect of the autonomy of the EU legal order” which protects “the values of respect for human dignity, freedom, democracy, equality, the rule of law, and respect for human rights.”

Belgium’s Foreign Minister Didier Reynders backed the deal and was “delighted” by the decision, which he said had “removed the final legal concerns” stopping the EU-Canada CETA deal from going into full effect.

But trade campaigners such as Paul de Clerck, of pressure group Friends of the Earth Europe, were dismayed. “Legal is not the same as fair,” he said.

“Corporate courts remain an unacceptable system that give VIP rights to big business and challenge our social, environmental and health standards… and we call on EU member states to reject the ratification of CETA, the EU-Canada trade deal.”

Over the past year and a half, almost all the chapters of the CETA deal have been implemented, on a provisional basis. 

Disclaimer: Validity of the above story is for 7 Days from original date of publishing. Source: AFP.