Government approves Bill to enable ratification of EU-Canada Comprehensive Economic and Trade Agreement (CETA)

The Tánaiste and Minister for Foreign Affairs and Trade, Simon Harris, has received Cabinet approval for the Arbitration (Amendment) Bill 2025 which will enable the ratification of the EU-Canada Comprehensive Economic and Trade Agreement (CETA).

Once enacted, the Bill will enable the State to progress plans to ratify CETA and other international agreements.

The Tánaiste said: “The aim of this Bill is to allow us proceed with ratifying CETA and other similar agreements with investment protection provisions. This is a priority for the government, not least against the background of today’s volatile international trading environment.

“CETA is crucial for Ireland's credibility as a trading nation and as a favourable destination for foreign investment, supporting the growth of Irish businesses including small and medium size businesses.

“The ratification of CETA is a Programme for Government commitment that I am determined to deliver. It is good for Canada, good for the EU and most definitely good for Ireland.”

Since the provisional application of CETA, there has been a very significant increase in the overall Ireland-Canada trading relationship, which went from €3.2 billion in 2016 in two-way trade in both goods and services to more than €10 billion in 2023.

In 2024, Ireland’s goods exports to Canada stood at €4.1 billion, more than a fourfold increase on the pre-CETA export levels of €0.9 billion in 2016.

Ireland’s goods imports from Canada stood at €1.2 billion in 2024, more than double the pre-CETA import levels of €0.5 billion in 2016.

The Bill provides for a new procedure in Irish law for the enforcement of awards made by tribunals established under CETA and the new generation of agreements with investment protection provisions to address concerns identified by the Supreme Court in the Costello judgments. It further specifies applicable safeguards.

The Bill will shortly move on to the next legislative steps, including Oireachtas debate. It is the government’s intention to have legislation in place as soon as possible. Following enactment of the legislation, steps will be taken to proceed towards ratification of CETA and other similar agreements with investment protection provisions.

The provisional application of CETA has benefited people and businesses – both small and large – in both Ireland and Canada, as evidenced in a September 2025 comprehensive Ireland-Canada Economic Report: ‘Beyond Barriers – Deepening Canada-Ireland Trade and Investment’.

CETA provides significant opportunities to help Irish based companies increase market and product diversification. Canada is a key export market, particularly for our indigenous exporters, with more than 400 Enterprise Ireland clients doing business in the Canadian market.

In services and investment, CETA is the most far-reaching agreement the EU has ever concluded. Almost half of the benefits anticipated from CETA are expected in the services sector.

According to Canadian data, Ireland's FDI stock in Canada stood at CA$17.7 billion (Canadian dollars) in 2022, ranking Ireland as the 12th largest investor country (7th largest of EU countries) in Canada. According to the CSO, bilateral FDI stock stood at €8.8 billion in 2023, up from pre-CETA levels of €2.5 billion in 2016 with Canadian direct investment in Ireland standing at €5.2 billion and Ireland’s investment in Canada at €3.6 billion.

The Ireland Canada Business Association estimates that there are over 75 Canadian companies operating in Ireland, employing around 15,000 people and a further 12,000 indirect jobs are supported by this activity across the country. It is estimated that the gross wage contribution from this is approximately €750 million, of which €187 million is generated in employment-related taxes.

The amendment to the Arbitration Act and the ratification of CETA will not undermine Ireland’s right to regulate for legitimate policy objectives.

ENDS

Press Office

16 November 2025