International Trade and Investment Agreements

1
International Trade and Investment Agreements

• February 11

2
More than just NAFTA and the WTO

• Canadas 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
• http//www.international.gc.ca/trade-agreements-ac
  cords-commerciaux/agr-acc/index.aspx

3
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 2006.
• http//www.cbc.ca/news/background/softwood_lumber/
  

4
NAFTA Chapter 11 Investment

• NAFTAs 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, 153-156)
• http//www.policyalternatives.ca/publications/repo
  rts/nafta-chapter-11-investor-state-disputes-janua
  ry-1-2008

5
NAFTA Chapter 11 Investment

• In 2009, Dow Chemicals launched a suit over
  Quebecs ban on lawn pesticides.
  http//www.thestar.com/comment/article/624693
• In 2009, Cargill was awarded US77.3 million in a
  dispute with the Mexican government. This is the
  largest award issued under Chapter 11 of NAFTA.
• http//www.investmenttreatynews.org/cms/news/archi
  ve/2009/09/29/claim-by-cargill-leads-to-another-lo
  ss-for-mexico.aspx

6
National Procurement and Obamas Buy American
policy

• James Laxer, A Raw Trade Deal for Canada Feb.
  5, 2010.
• 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.
• http//www.thestar.com/printarticle/761428

7
National Procurement and Obamas 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.