CETA 2026: SMEs and investors can now resolve disputes with States faster and cheaper

Key data

SMEs and individual investors operating under the umbrella of the CETA (Comprehensive Economic and Trade Agreement between the EU and Canada) have had, since March 5, 2026, a new tool to protect their investments: an accelerated dispute resolution procedure between investors and States, specifically designed to reduce the entry barrier that international arbitration has historically represented.

The Decision 1/2026 of the CETA Joint Committee, published in the Official Journal of the EU on July 3, 2026, establishes additional rules that complement the investment tribunal system already existing in the CETA. The objective is clear: to ensure that a Spanish SME with an investment in Canada—or a Canadian company in Spain—does not have to give up claiming its rights because it cannot afford the costs of conventional international arbitration.

What does this regulation establish?

CETA already included an investment tribunal system (ICS) to resolve disputes between private investors and the States party. However, that mechanism was designed primarily for large corporations with the capacity to undertake long and costly processes.

Decision 1/2026 adds an additional layer: an accelerated procedure with the following characteristics according to the approved text:

• Shorter deadlines than the standard CETA procedure.
• Simplified procedures, with fewer procedural burdens for the parties.
• Possibly reduced fees, especially aimed at natural persons and SMEs.
• Specific design for natural persons and smaller investors who until now could not access international arbitration due to its cost.

This decision does not replace the CETA investment tribunal system: it complements it. Companies that already had access to the standard mechanism continue to have it; those that could not access it for economic reasons now have a viable alternative.

Economic and operational impact

The most direct impact is the reduction in the cost of access to international justice. Until now, initiating an investor-State arbitration procedure could involve costs of hundreds of thousands of euros in legal fees, arbitration fees and procedural expenses, making it unfeasible for most SMEs to claim even when they were right.

With the new accelerated procedure, companies that have suffered regulatory measures from Spain or Canada that harm their investment—such as discriminatory regulatory changes, license denials, indirect expropriations or unequal treatment—have a real avenue for recourse.

From an operational perspective, companies should assess:

• Whether they have active or potential disputes against regulatory decisions by Spain or Canada under the CETA framework.
• Whether the new accelerated procedure is more convenient than the standard one for their specific case.
• The limitation periods applicable to their claims, which are not modified by this decision but condition the urgency of action.

Who does it affect?

• Spanish SMEs with investments in Canada that have suffered harmful regulatory measures by Canadian authorities.
• Canadian companies with investments in Spain affected by regulatory decisions by Spanish or EU authorities.
• Individual investors (natural persons) from the EU or Canada with investment disputes under the CETA framework.
• Legal advisors and consultants who accompany companies with cross-border EU-Canada activity.
• CFOs and financial directors of companies with regulatory exposure in Canada or in Spain from the Canadian side.

Practical example

Imagine a Spanish SME in the technology sector that in 2023 made a significant investment in Canada to establish a subsidiary. In 2025, the authorities of a Canadian province approve a regulation that, in practice, discriminates against foreign companies in the sector compared to local ones, drastically reducing the profitability of the investment.

Before Decision 1/2026, this SME had two options: absorb the losses or initiate international arbitration under the standard CETA, with procedural costs that could far exceed its financial capacity.

With the new accelerated procedure, this same SME can now file its claim through the simplified route, with shorter deadlines, lower procedural burden and possibly reduced fees, making economically viable a claim that was previously inaccessible. The result: real access to the protection that CETA promised on paper but was in practice reserved for large corporations.

What should companies do now?

1. Identify whether you have active investments in Canada or whether you are a Canadian company with investments in Spain that have been affected by regulatory measures.
2. Review whether there is any potential dispute against decisions by Spanish, Canadian or EU authorities that have harmed your investment under the CETA framework.
3. Consult with a specialist in international arbitration to assess whether the new accelerated procedure is applicable to your case and whether it is preferable to the standard CETA procedure.
4. Verify the limitation periods for any potential claim: the new route does not alter the deadlines for filing claims, so the urgency depends on when the fact giving rise to the dispute occurred.
5. Document any harmful regulatory measure received from March 5, 2026 onwards, the date this decision enters into force, so you can avail yourself of the new procedure if necessary.

Official source

Consult the complete regulation at the official source

Disclaimer: This article is for informational purposes only and does not constitute legal advice. For specific decisions, consult a qualified professional. Source: https://eur-lex.europa.eu/./legal-content/AUTO/?uri=OJ:L_202601468