The European Court of Justice (ECJ) ruled on Tuesday that the Comprehensive Economic and Trade Agreement's (CETA) investment court system or ICS, the planned mechanism for the settlement of disputes between investors and states, does not breach the laws of the European Union.
The court's opinion was previously requested by Belgium, as a result of the deal with the regional government of Wallonia which threatened to block the country from signing the trade deal, thus halting the ratification of the agreement which required unanimous approval of EU states.
"The court considers that the CETA does not confer on the envisaged tribunals any jurisdiction to interpret or apply EU law other than that relating to the provisions of that agreement," the court said, stating the mechanism "is, in principle, compatible with EU law."
