International Trade and International Trade and Investment AgreementsInvestment Agreements

February 11February 11

More than just More than just NAFTA and the WTONAFTA and the WTO

Canada’s Free Trade Agreements, Canada’s Free Trade Agreements, Foreign Investment Promotion and Foreign Investment Promotion and Protection Agreements (FIPAs) and other Protection Agreements (FIPAs) and other international economic agreements, both international economic agreements, both current and proposed. current and proposed.

List from the Department of Foreign Affairs List from the Department of Foreign Affairs and International Trade website:and International Trade website:

http://www.international.gc.ca/trade-agreements-accords-commerciauxhttp://www.international.gc.ca/trade-agreements-accords-commerciaux/agr-acc/index.aspx/agr-acc/index.aspx

Secure Access to US Market?Secure Access to US Market?

The Softwood Lumber Dispute (1982 to present)The Softwood Lumber Dispute (1982 to present)US producers have argued that Canada engages in US producers have argued that Canada engages in unfair trading practices. Responding to the complaints, unfair trading practices. Responding to the complaints, the US state has imposed various duties on Canadian the US state has imposed various duties on Canadian softwood lumber imports to the US.softwood lumber imports to the US.Canada has repeatedly won disputes through NAFTA Canada has repeatedly won disputes through NAFTA and the WTO.and the WTO.Unrelenting US pressure (and protectionism) has forced Unrelenting US pressure (and protectionism) has forced the Canadian government to the bargaining table, most the Canadian government to the bargaining table, most recently resulting in the Softwood Lumber Agreement of recently resulting in the Softwood Lumber Agreement of 2006.2006.http://www.cbc.ca/news/background/softwood_lumber/http://www.cbc.ca/news/background/softwood_lumber/

NAFTA Chapter 11: InvestmentNAFTA Chapter 11: Investment

NAFTA’s investor-state dispute settlement mechanism NAFTA’s investor-state dispute settlement mechanism allows foreign investors to bring claims against NAFTA allows foreign investors to bring claims against NAFTA governments for infringements of the investor rights governments for infringements of the investor rights outline in chapter 11 of NAFTA.outline in chapter 11 of NAFTA.

Foreign investors have used chapter 11 to challenge a wide Foreign investors have used chapter 11 to challenge a wide range of state actions, including environmental range of state actions, including environmental regulations.regulations.

Significant cases: Ethyl, Myers and Metalclad (McBride, Significant cases: Ethyl, Myers and Metalclad (McBride, 153-156)153-156)

http://www.policyalternatives.ca/publications/reports/nafta-chapter-11-http://www.policyalternatives.ca/publications/reports/nafta-chapter-11-investor-state-disputes-january-1-2008investor-state-disputes-january-1-2008

NAFTA Chapter 11: InvestmentNAFTA Chapter 11: Investment

In 2009, Dow Chemicals launched a suit over In 2009, Dow Chemicals launched a suit over Quebec’s ban on lawn pesticides.Quebec’s ban on lawn pesticides. http://www.thestar.com/comment/article/624693http://www.thestar.com/comment/article/624693

In 2009, Cargill was awarded US$77.3 million in a In 2009, Cargill was awarded US$77.3 million in a dispute with the Mexican government. This is the dispute with the Mexican government. This is the largest award issued under Chapter 11 of largest award issued under Chapter 11 of NAFTA.NAFTA.

http://www.investmenttreatynews.org/cms/news/archive/http://www.investmenttreatynews.org/cms/news/archive/2009/09/29/claim-by-cargill-leads-to-another-loss-for-2009/09/29/claim-by-cargill-leads-to-another-loss-for-mexico.aspxmexico.aspx

National Procurement and National Procurement and Obama’s “Buy American” policyObama’s “Buy American” policy

James Laxer, “A Raw Trade Deal for Canada” James Laxer, “A Raw Trade Deal for Canada” Feb. 5, 2010.Feb. 5, 2010.““the Buy American provisions in the U.S. the Buy American provisions in the U.S. Recovery Act violate the spirit if not the terms of Recovery Act violate the spirit if not the terms of NAFTA that guarantee the right of Canadian NAFTA that guarantee the right of Canadian firms to bid on U.S. federal government projects firms to bid on U.S. federal government projects with the exception of defence contracts.” with the exception of defence contracts.” Canada and the US have recently a reached a Canada and the US have recently a reached a tentative and controversial deal over the issue.tentative and controversial deal over the issue.

http://www.thestar.com/printarticle/761428http://www.thestar.com/printarticle/761428

National Procurement and National Procurement and Obama’s “Buy American” policyObama’s “Buy American” policy

Laxer, “A Raw Trade Deal for Canada”Laxer, “A Raw Trade Deal for Canada”

““Under the deal, Canadian provinces and Under the deal, Canadian provinces and municipalities will permanently give up the right municipalities will permanently give up the right to favour local companies in awarding to favour local companies in awarding contracts.” contracts.”

““Whenever the United States needs, in the Whenever the United States needs, in the pursuit of its own interests, to violate trade deals pursuit of its own interests, to violate trade deals with Canada, it does so. It has done this for with Canada, it does so. It has done this for years on softwood lumber and now on the years on softwood lumber and now on the operations of the U.S. Recovery Act.”operations of the U.S. Recovery Act.”