An Experienced Developed Democracy: Canada and Investor-State Arbitration

Abstract

The aim of this paper is to assess the experience of Canada with Investor-State Arbitration (ISA), through the review of the arbitral awards in which it was involved. Since all these cases were initiated by US investors on the basis of NAFTA, it should inform the current debate on the desirability of ISA between developed democracies. The investment treaty practice of Canada is first analysed in order to set the broader context of the paper. All the cases brought against Canada by US investors on the basis of NAFTA are then reviewed. In the last part, an attempt is made to draw lessons from the Canadian experience and to single out challenges for ISA between developed democracies.

Keywords: Investor State Dispute Settlement, ISDS, Investor State Arbitration (ISA), International Investment Law, Foreign Direct Investment, Canada

JEL Classification: K33