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North America

Canada and the United States have signed about 180 investment agreements.

They are both party to the North American Free Trade Agreement (NAFTA) with Mexico. Sixty-seven disputes were launched under NAFTA.

NAFTA was recently renegotiated and replaced by the US-Mexico-Canada Agreement (USMCA) that was signed in November 2018 and is yet to enter in force. The investor-state dispute settlement (ISDS) mechanism between the US and Canada, and between Mexico and Canada has been removed – even though it is included in the Trans-Pacific Partnership, to which both Mexico and Canada belong. Only limited claims are allowed between the US and Mexico, after exhaustion of local remedies. But the ISDS mechanism has been maintained between the two countries for claims pertaining to Mexico’s oil and gas sector.

The US is also party to the Dominican Republic–Central America Free Trade Agreement (CAFTA), with six Central American states. US investors have initiated all 11 known CAFTA disputes.

Canada has an investment treaty with China and is party to the Comprehensive Economic and Trade Agreement (CETA) with the European Union. CETA includes a revised ISDS mechanism, the investment court system, which has been critiqued for not addressing the core of the problem behind the mechanism.

US investors have extensively used the ISDS mechanism. They have initiated around 180 disputes, over 17% of all known cases, making the US the most frequent home state of investors. The US has never lost an ISDS case.

Canadian investors have initiated about 50 disputes and Canada has been the fourth most frequent target among ‘developed’ states (9th globally), with 29 cases.

Photo: Public Citizen

(April 2020)

Argentine crisis arbitration awards pile up, but investors still wait for a payout
Law.com | 25-Jun-2009
It’s time for the US Department of State to pressure Argentina to comply with its treaty obligations, some lawyers suggest.
Argentina , investment | BITs , investor-state disputes | ISDS , US
Will Dow challenge Quebec pesticide law?
| 3-Apr-2009
Dow AgroSciences is mulling over a NAFTA challenge to Quebec’s law banning the cosmetic use of pesticides, setting a spotlight on one of the most controversial clauses of the trade agreement among Canada, the United States and Mexico.
agriculture | farmers | food , Canada , corporate interests , environment , investor-state disputes | ISDS , US
US trade policies limit 52 governments’ use of capital controls to fight financial crisis
IPS | 13-Feb-2009
As the global economy descends further into crisis, a new report finds that U.S. trade and investment agreements with 52 countries have removed one tool that has proved effective in past crises: capital controls.
BITs (texts of) , FTAs (texts of) , ICSID , investment | BITs , investor-state disputes | ISDS , NAFTA | USMCA , sovereignty | democracy , US
Ottawa involved in AbitibiBowater dispute, Day says
| 29-Jan-2009
The federal government has confirmed it is now playing a part to help resolve a dispute between AbitibiBowater and the Newfoundland and Labrador government.
Canada , investor-state disputes | ISDS , NAFTA | USMCA , US
Tribunal rejects Ecuador’s jurisdictional objections in dispute with Chevron
ITN | 6-Jan-2009
A tribunal has determined that it holds jurisdiction to hear a claim brought by Chevron Corporation against Ecuador for alleged violations of the Ecuador-United States bilateral investment treaty (BIT).
Ecuador , investment | BITs , investor-state disputes | ISDS , US
Canadian company threatens El Salvador with CAFTA lawsuit over mining project
Upside Down World | 22-Dec-2008
A Canadian mining company intends to sue El Salvador’s government for several hundred million dollars if it is not granted permission to open a widely unpopular gold and silver mine that scientists warn would have devastating effects on local water supplies.
CAFTA , Canada , El Salvador , investor-state disputes | ISDS , mining
El Salvador warned of CAFTA-DR lawsuit by mining company
| 13-Dec-2008
A Canadian mining company and its American subsidiary have threatened the government of El Salvador with a lawsuit after it failed to receive regulatory approval to begin digging for gold and silver in an area some 65 km from San Salvador. The proposed mine has drawn intense opposition from civil society and church-based groups, although the mining company maintains that it enjoys broad public support in El Salvador.
CAFTA , Canada , El Salvador , investment | BITs , investor-state disputes | ISDS , mining
Invoca firma de EU el TLCAN por veda a herbicida en Canadá
Sendero del Peje | 23-Oct-2008
Montreal, 22 Oct (Notimex).- La firma estadunidense Dow AgroSciences recurrió al Capítulo 11 del Tratado de Libre Comercio de América del Norte (TLCAN) para pedir compensación por la prohibición en Québec del uso, “para fines cosméticos”, del herbicida 2,4-D
agriculture | farmers | food , Canada , investor-state disputes | ISDS , NAFTA | USMCA , US
Quebec herbicide ban violates NAFTA, pesticide maker alleges
CBC | 23-Oct-2008
Dow AgroSciences, maker of the commonly used herbicide ingredient 2,4-D, is challenging the Quebec government under the North American Free Trade Agreement for banning its product.
Canada , investor-state disputes | ISDS , NAFTA | USMCA
NAFTA clause that allows companies to sue governments draws flak
| 22-Mar-2008
When agribusiness giant Archer Daniels Midland Co. quietly filed court documents this month to overturn — and increase — a multi-million-dollar trade penalty it won against the Mexican government, the move shone a light on Chapter 11, perhaps the most controversial clause in the North American Free Trade Agreement.
Canada , investment | BITs , investor-state disputes | ISDS , Mexico , NAFTA | USMCA , US