International Trade and Investment Agreements February 11

More than just NAFTA and the WTO Canada’s Free Trade Agreements, Foreign Investment Promotion and Protection Agreements (FIPAs) and other international economic agreements, both current and proposed. List from the Department of Foreign Affairs and International Trade website: commerciaux/agr-acc/index.aspx commerciaux/agr-acc/index.aspx

Secure Access to US Market? The Softwood Lumber Dispute (1982 to present) US producers have argued that Canada engages in unfair trading practices. Responding to the complaints, the US state has imposed various duties on Canadian softwood lumber imports to the US. Canada has repeatedly won disputes through NAFTA and the WTO. Unrelenting US pressure (and protectionism) has forced the Canadian government to the bargaining table, most recently resulting in the Softwood Lumber Agreement of

NAFTA Chapter 11: Investment NAFTA’s investor-state dispute settlement mechanism allows foreign investors to bring claims against NAFTA governments for infringements of the investor rights outline in chapter 11 of NAFTA. Foreign investors have used chapter 11 to challenge a wide range of state actions, including environmental regulations. Significant cases: Ethyl, Myers and Metalclad (McBride, ) investor-state-disputes-january investor-state-disputes-january

NAFTA Chapter 11: Investment In 2009, Dow Chemicals launched a suit over Quebec’s ban on lawn pesticides. In 2009, Cargill was awarded US$77.3 million in a dispute with the Mexican government. This is the largest award issued under Chapter 11 of NAFTA. 09/09/29/claim-by-cargill-leads-to-another-loss-for- mexico.aspx 09/09/29/claim-by-cargill-leads-to-another-loss-for- mexico.aspx

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

National Procurement and Obama’s “Buy American” policy Laxer, “A Raw Trade Deal for Canada” “Under the deal, Canadian provinces and municipalities will permanently give up the right to favour local companies in awarding contracts.” “Whenever the United States needs, in the pursuit of its own interests, to violate trade deals with Canada, it does so. It has done this for years on softwood lumber and now on the operations of the U.S. Recovery Act.”