Bill C-53 (Historical)
Settlement of International Investment Disputes Act
An Act to implement the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention)
This bill was last introduced in the 39th Parliament, 1st Session, which ended in October 2007.
Sponsor
Peter MacKay Conservative
Status
Second Reading and Referral to Committee
(This bill did not become law.)
Elsewhere
All sorts of information on this bill is available at LEGISinfo, provided by the Library of Parliament. You can also read the full text of the bill.
Votes
- May 15, 2007 Passed That the Bill be now read a second time and referred to the Standing Committee on Foreign Affairs and International Development.
Settlement of International Investment Disputes Act
Government Orders
January 29th, 2008 / 10:20 a.m.
See
context
Bloc
Vivian Barbot Papineau, QC
Mr. Speaker, on May 15, 2007, I had the opportunity here in the House to talk about why the Bloc Québécois supports Bill C-53, which is identical to Bill C-9, An Act to implement the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention). Today, therefore, I will talk about how international treaties are now typically drafted with no regard whatsoever for democracy.
I would like to begin by saying that the Bloc Québécois wants all treaties to go through the House of Commons. The current way of doing things completely disregards democracy. Bill S-5, which provides for the coming into force of tax conventions, shows how important international treaties are to our daily lives. These days, treaties are brought before Parliament only when they require enabling legislation.
In Canada, Parliament and parliamentarians play a minimal role in negotiating and ratifying international treaties. The federal executive controls all phases of the process. The executive is also responsible for what takes place in negotiations, which are, for the most part, secret. This secrecy is an important part of the federal government's negotiation strategy. Next to nothing, and sometimes nothing at all is disclosed before the parties sign an agreement in principle on the content and even the wording of the treaty. Even though the provinces are usually kept abreast of negotiations for trade agreements, they participate very little in the process and, with few exceptions, are totally excluded from the decision-making process.
Where international treaties are concerned, democracy is totally absent. There is no complete compilation of such treaties. Governments release them when and if they see fit, and people cannot be sure they are all being disclosed. The treaty section at the Department of Foreign Affairs does not even have a list of signed treaties to consult. The government is not required to table treaties in the House of Commons. It does not even have to inform the House or the public that it has signed or ratified treaties. The House does not get to approve treaties. The government can sign and ratify any treaty it wants without consulting the representatives of the people. At the very most, treaties requiring legislative changes are brought before Parliament before ratification.
In Quebec, since 2002, a vote in the National Assembly is required. Being in no way involved in the negotiation of treaties, the House of Commons cannot consult the public. It is therefore not surprising to see people increasingly expressing their opposition in the streets. In fact, there is no other place for them to be heard. The government is not required to consult the provinces either, even though it cannot implement treaties that concern areas of provincial jurisdiction and the provinces are not bound by the federal government's signature. It is totally absurd that no formal consultation mechanism is in place.
The government is preventing the provinces from being able to act internationally by controlling their international relations and by not allowing them to reach treaty-like agreements. This is unacceptable.
It used to be that international treaties governed relations between states and had little or no impact on how society functioned or on the lives and rights of citizens. At the time, it was acceptable for the government to unilaterally sign or ratify treaties.
Now, however, international treaties, especially trade agreements, affect the power of the state, the workings of society and the role of citizens. Furthermore, they often have an even greater impact than many bills. The Canadian treaty ratification process is not in line with this new reality. The people's representatives must be involved in decisions that affect the people they represent.
During the election campaign, the Conservatives promised to bring treaties before the House prior to ratifying them, but they still have not kept that promise. Recently, the government signed an investment protection agreement with Peru. This agreement is based on chapter 11 of NAFTA, which has been criticized by many. Yet the government concluded it without putting it to the House. When the House presses the government to honour its international commitments, as it has done in the case of the Kyoto protocol, the government does what it pleases, with no regard for the will of the people or the promise it made when it signed the treaty.
As was the case when Bill S-5 was passed, the fact that Bill C-9 will be passed quickly is an opportunity to show the government that democracy is not something to be feared when concluding fair treaties. The government must honour its promise to submit to the elected representatives any treaties that it intends to ratify, as it is forced to do here today with the three tax treaties. Once it has ratified them, it must honour them, as we hope it will honour the tax treaties we are discussing here today, and the Kyoto protocol, which the House is pressing it to honour.
This failure to involve the representatives of the people is an anachronism. It is impossible to tell from the division of legislative powers provided in the Constitution Act, 1867 which level of government, federal or provincial, has authority to sign a treaty with a foreign government. No provision is made in the Canadian Constitution for a jurisdiction anything like external relations or international relations. This is understandable, however, because when the Constitution Act, 1867 was passed by the British Parliament in London, Canada was still a colony of the British Empire. In 1867, the British Parliament reserved for the British Crown the power to represent the Dominion of Canada internationally and to enter into treaties with foreign countries on its behalf.
Under section 132 of the Constitution Act, 1867, however, the federal government was given responsibility for implementing, in Canada, treaties entered into by the British Crown, where these were applicable to this country.
In 1931, pursuant to the Statute of Westminster, Canada, as well as several other dominions of the British Empire, acquired full independence and, along with it, the authority to act with all the attributes of a sovereign state on the international scene. It was then that the federal government acquired jurisdiction over external affairs. Considered a royal prerogative when the Constitution was written, this authority was transferred to the government which, as the sovereign's representative, exercises it alone and without involving Parliament.
Once the governor in council approves an agreement reached between Canada and a foreign country, no matter who negotiated the treaty, that agreement becomes an international treaty. The representatives of the people do not have a say in it because the federal government has simply inherited a royal prerogative dating back to the British Empire.
Parliament only becomes involved when the ratification of a treaty requires an enabling statute. Canadian legislation may have to be amended because of the treaty. The legislative implementation of these treaties is the only occasion when Parliament has a say in the entry into force of a treaty in Canada.
It should be pointed out that many treaties requiring the Canadian state to adopt specific standards are not presented to Parliament for the adoption of enabling legislation. In such cases, the government believes that the Canadian legislation already conforms to the international obligations adopted or that the subject of the treaty does not require the adoption of new legislative provisions.
Consequently, no amendments are made to existing laws nor is a new law adopted by Parliament. For example, Parliament did not adopt legislation to implement or approve the ratification of the International Convention on the Rights of the Child. In such cases, the treaty never goes before Parliament.
In short, Canada is less democratic today that in was in the 20's. In June 1926, Prime Minister King introduced a resolution that was unanimously adopted by the House of Commons. It read as follows:
Before Her Majesty's Canadian ministers recommend ratification of a treaty or convention involving Canada, Parliament's approval must be obtained.
In 1941, Mackenzie King reiterated his commitment to this formula:
With the exception of treaties of lesser importance or in cases of extreme urgency, the Senate and the House of Commons are invited to approve treaties, conventions and formal agreements before ratification by or on behalf of Canada.
Over the years, approval by resolution has been sought less and less. During the cold war, the government dropped the convention of seeking Parliament's approval before signing treaties or engaging in military intervention on foreign soil.
The government even stopped tabling treaties in Parliament. Except for the Kyoto protocol, not one treaty has been approved by resolution since 1966—over 40 years ago—and that was the Auto Pact. As for Kyoto, the government has refused to honour it. So much for democracy.
Furthermore, Canada is less democratic than the rest of the industrialized world. Most other major industrialized democracies support greater involvement of their parliaments in ratifying treaties. For example, the constitutions of France, Germany, Denmark, Italy and the United States require legislative approval of some types of international agreements prior to ratification.
Some countries that share constitutional traditions with Canada have tried to enshrine their parliament's role in examining treaties.
In the United Kingdom, a convention established in the 1920s, the Ponsonby Rule, requires the tabling of international agreements in both Houses of Parliament at least 21 days before they are to be ratified. This gives parliamentarians the opportunity to debate them before the government ratifies them, even though these debates are not binding. This kind of thing does not exist in Canada.
More recently, in 1996, Australia changed its procedure for concluding treaties. Under this procedure, treaties must be tabled in parliament at least 15 sitting days before any binding decision is made by the executive branch; a national interest analysis of the expected impact of the treaty obligations must be done, for each treaty, and tabled in parliament; a standing joint committee on treaties must be established to examine potential treaties and report on them. There is nothing of the sort in Canada.
As usual, Canada trails Quebec.
In Canada, the provinces pass laws in their constitutional fields of jurisdiction. As the British Privy Council ruled in 1937 in the labour conventions case, the provinces' legislative authority also extends to the implementation of international treaties.
As soon as a treaty or part of a treaty involves a provincial jurisdiction, the provisions in question can be implemented only by the provinces. Since 1964, Quebec has concluded some 550 international agreements involving many fields of jurisdiction for which it has full or partial responsibility, such as culture, economic development, drivers' licences, international adoption, the environment, science and technology, and communication.
For a major agreement to be binding, the Government of Quebec must first submit it to the Quebec National Assembly for approval. Only then will Quebec be bound by an international agreement entered into by Canada and agree to pass legislation to implement the agreement. Furthermore, under the legislation, Quebec's Department of International Relations must list and publish all of Quebec's international agreements. There is nothing of the sort in Canada.
The Bloc Québécois has introduced three bills on treaties to modernize the entire process for concluding international treaties.
The Bloc Québécois bill on treaties was designed to build transparency and democracy into the process of negotiating and concluding international treaties. Since such treaties have an increasingly large impact on our lives, it was more important than ever to make such a change. Moreover, the bill required that the federal government respect the provinces' jurisdictions.
The bill provided for five changes: all treaties were to be put before the House of Commons, the House was to approve important treaties, a parliamentary committee was to consult civil society before Parliament voted on important treaties, treaties were to be published in the Canada Gazette and on the Department of Foreign Affairs website and the government was to consult with the provinces before negotiating a treaty in an area of provincial jurisdiction.
The treaty bill came to a vote only once, on September 28, 2005. All the federalist parties voted against it.
No strangers to contradiction, the Conservatives made two promises about international treaties during the last election campaign. They promised to put international treaties before the House prior to ratification and to give the provinces a role in concluding treaties pertaining to their jurisdictions. Both these promises were broken.
Since they were elected, the Conservatives have amended NAFTA. They have signed two investment protection agreements based on NAFTA chapter 11, one of which has been ratified. They have concluded a military cooperation agreement to authorize British soldiers to train in Canada. They have signed cooperation agreements on higher education, even though education does not come under Ottawa's jurisdiction. They have concluded an agreement to facilitate technology transfers from Canada to China. And they have amended the free trade agreement with Chile.
Aside from the amended NATO treaty, which was brought before the House at the last minute for a mini-debate and vote, none of these international treaties has come before the House.
And where is the nation of Quebec in all this? The federalist parties say they rejected the Bloc Québécois bill because of two clauses, 4 and 6.
First, clause 4 provided for a mechanism for consulting with the provinces:
Canada shall not, without consulting the government of each province in accordance with the agreements entered into under section 5, negotiate or conclude a treaty
(a) in an area under the legislative authority of the legislatures of the provinces; or
(b) in a field affecting an area under the legislative authority of the legislatures of the provinces.
As for clause 6, it recognized the validity of the Gérin-Lajoie doctrine:
Nothing in this Act in any manner limits or affects the royal prerogative of Her Majesty in right of a province with respect to the negotiation and conclusion of treaties in an area under the legislative authority of the legislatures of the provinces.
The clause on consulting Quebec and the provinces is nothing revolutionary. When the federal government discusses, in an international forum, the text of a treaty having an impact on the provinces, then it consults the provinces beforehand.
Under an agreement concluded in 1975—and still in effect—between the Trudeau government and the provinces, Ottawa consults the provinces at every stage of the negotiation of treaties involving human rights.
Every federalist party in Ottawa is more centralist than Pierre Elliott Trudeau on the issue of international relations.
It is not just a Bloc Québécois bill that the federalist parties have rejected, it is a Quebec law. Section 22.1 of the Act respecting the Ministère des Relations internationales requires the consent of the Government of Quebec with respect to the signing, ratification or adherence by the Government of Canada, before the latter acts internationally on any agreement concerning matters under Quebec's constitutional jurisdiction.
As far as the section recognizing the provinces' right to negotiate and conclude international treaties in their jurisdictions is concerned, it was simply a recognition of the Gérin-Lajoie doctrine which every Government of Quebec has been following since 1965.
The Gérin-Lajoie doctrine is closely linked to Quebec's independence: the provinces are completely sovereign within their jurisdictions and they must exercise their authority over the entirety of their jurisdictions, which includes signing and ratifying international treaties.
In closing, these are some of the arguments in favour of more involvement by parliamentarians in the negotiation and ratification of international treaties for the good of democracy.
Settlement of International Investment Disputes Act
Routine proceedings
October 29th, 2007 / 3:05 p.m.
See
context
Liberal
The Speaker Peter Milliken
The Chair is satisfied that this bill is in the same form as Bill C-53 was at the time of prorogation of the first session of the 39th Parliament.
Accordingly, pursuant to order made on Thursday, October 25, 2007, the bill is deemed read the second time and referred to the Standing Committee on Foreign Affairs and International Development.
(Bill read the second time and referred to a committee)
Settlement of International Investment Disputes Act
Routine proceedings
October 29th, 2007 / 3:05 p.m.
See
context
Beauce
Québec
Conservative
Maxime Bernier Minister of Foreign Affairs
moved for leave to introduce Bill C-9, An Act to implement the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention).
Mr. Speaker, pursuant to the special order made previously, I would like to inform the House that this bill is in the same form as Bill C-53 was in the previous session at the time of prorogation.
(Motions deemed adopted, bill read the first time and printed)
Business of the House
Government Orders
June 14th, 2007 / 3:10 p.m.
See
context
York—Simcoe
Ontario
Conservative
Peter Van Loan Leader of the Government in the House of Commons and Minister for Democratic Reform
Mr. Speaker, I will be happy to address that in the affirmative in a moment but there is more that we should know about in terms of the business we are doing.
We will continue today with Bill C-42, the quarantine act, Bill C-58, the railway transportation bill and Bill C-21, An Act to amend the Criminal Code and the Firearms Act (non-registration of firearms that are neither prohibited nor restricted).
Tonight we have the emergency debate pursuant to Standing Order 52 that the Speaker has determined should proceed.
On Friday we will call Bill C-33, the income tax bill and Bill C-6, the aeronautics bill.
Next week is got the job done week when the House has completed the nation's business for this spring's session. During the got the job done week we will continue and hopefully complete the business from this week, as well as some new legislation and legislation that will be out of committee or the Senate.
The list of bills that are currently on the order paper, in addition to those I have identified for this week that I would like to see completed by the House before the summer recess are: Senate amendments to Bill C-31, An Act to amend the Canada Elections Act and the Public Service Employment Act.
There are also the following bills: Bill C-32, An Act to amend the Criminal Code (impaired driving) and to make consequential amendments to other Acts; Bill C-44, An Act to amend the Canadian Human Rights Act and Bill C-53, An Act to implement the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention).
Another bill includes Bill C-54, An Act to amend the Canada Elections Act (accountability with respect to loans).
By the end of next week, Canadians expect that the Senate will have completed its consideration of budget Bill C-52 without any amendments so that they can relax for the summer with the knowledge that $4.3 billion in the 2006-07 year end measures will be in play.
If there are amendments, we will have to be here in the House to respond and protect measures that might otherwise be lost, such as a $1.5 billion for the Canada ecotrust for clean air and climate change; $600 million for patient wait times guarantees; $400 million for the Canada infoway; $100 million for the CANARIE project to maintain the research broadband network linking Canadian universities and research hospitals; $200 million for protection of endangered spaces; and much more.
May 31st, 2007 / 11:05 a.m.
See
context
Conservative
The Chair Kevin Sorenson
That gives us a Wednesday meeting with national defence. Okay.
The second issue is that the analysts from the Library of Parliament, with the clerk of the committee, will prepare a draft work plan for the study of Bill C-53. It's our first piece of legislation that we'll be dealing with. It deals with investments in Canada. We're going to get the report on that. It's a very brief bill.
Madame Lalonde, did you want to speak?
Peter Van Loan York—Simcoe, ON
I would not do that.
Tomorrow is an allotted day.
Next week is constituent consultation week, when the House will be adjourned to allow members to return to their ridings and meet with constituents to share with them the activities of Parliament since the last constituency break.
For the interest of members, I will quickly review our plan for the context of our overall legislative agenda.
As he requested, this is currently strengthening the economy week, where a number of financial bills moved forward. The budget bill was sent to committee and, hopefully, it will be reported back tomorrow, or soon, so we can deal with it at third reading when the House returns after the break.
Bill C-40, an act to amend the Excise Tax Act, was read a third time and sent to the Senate. Bill C-53, an act to implement the convention on the settlement of investment disputes, Bill C-33, the sales tax bill and Bill C-47, the Olympics symbol bill were all sent to committee and we all would like to see those back in the House for report stage and third reading.
In an earlier week, Bill C-36, the bill that makes changes to the Canada pension plan and the Old Age Security Act, was made into law after receiving royal assent.
Strengthening accountability through democratic reform week was a success with the consideration of Bill C-43, Senate consultation. We had three new democratic reform bills introduced that week: Bill C-55, to expand voting opportunities; Bill C-56, an act to amend the Constitution Act, democratic representation; and Bill C-54, a bill that would bring accountability with respect to loans. We hope to continue debate on that particular bill later today.
Bill C-16, fixed dates for elections, was given royal assent and is now law, which I think is the cause of the commotion now in all the committees where Liberals are using procedural tactics. Now they feel they can do it with a free hand.
Two other democratic reform bills are in the Senate, Bill C-31, voter integrity, and Bill S-4, Senate tenure. I really would like to have the term limits bill from the Senate for an upcoming democratic reform week if the opposition House leader can persuade his colleagues in the Senate to finally deal with that bill after 352 days. We may get 352 seconds in a filibuster, but they have had 352 days so far. They have been stalling for a year.
During the consultation week, I will be interested in hearing what our constituents think of the plight of Bill S-4 and the irony of those unaccountable senators delaying it.
We dedicated a good deal of our time focusing on making our streets and communities safer by cracking down on crime. Now that we have had the help of the NDP, we restored the meaningful aspects that the Liberals gutted in committee to Bill C-10, the bill to introduce mandatory penalties for violent and gun crimes. We are continuing to debate that bill today at third reading.
Bill C-48, the bill dealing with the United Nations convention on corruption, was adopted at all stages.
Bill C-26, the bill to amend the Criminal Code with respect to interest rates, was given royal assent.
Bill C-22, the age of protection, was given final reading and sent to the Senate, although it did spend close to, if not in excess of, 200 days in committee where the Liberals were obstructing and delaying its passage.
We made progress on Bill C-27, the dangerous offenders legislation. We would like to see that back in the House.
Bill C-9, An Act to amend the Criminal Code (conditional sentence of imprisonment) and a host of other justice bills are working their way through the system.
Members can advise their constituents that when we return, we will be reviving two themes, back by popular demand. Beginning May 28, we will begin again with strengthening accountability through democratic reform with: Bill C-54, political loans; Bill C-55, additional opportunities for voting; and Bill C-56, democratic representation.
Up next is a second go-round on strengthening the economy week with Bill C-52, the budget implementation bill, which will be called as soon as it is reported back from committee.
In the near future, we will have the improvement of aboriginal people quality of life week with Bill C-44. This bill will grant first nations residing on Indian reserves access to the Canadian charter of human rights. They have been denied this right for 30 years. Unfortunately, Bill C-44 is being delayed by the opposition. This is another bill being delayed by the opposition in committee.
After Bill C-44, I intend to debate Bill C-51. The agreement establishes the use and ownership of land and resources and will foster economic development. This bill illustrates Canada's commitment to the North and to settling land claims.
I wish all members a productive constituent consultation week and look forward to more progress on the government's legislative agenda when the House returns on May 28.
Settlement of International Investment Disputes Act
Government Orders
May 15th, 2007 / 6:20 p.m.
See
context
Conservative
Jay Hill Prince George—Peace River, BC
Mr. Speaker, if you were to seek it I think you would find unanimous consent to apply the results of the vote previously taken to the motion on Bill C-53, with Conservative members voting yea, and I would like to add the hon. member for Edmonton—St. Albert.
The House resumed consideration of the motion that Bill C-53, An Act to implement the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID Convention), be read the second time and referred to a committee.
Settlement of International Investment Disputes Act
Government Orders
May 15th, 2007 / 4:50 p.m.
See
context
Bloc
Serge Cardin Sherbrooke, QC
Mr. Speaker, all the agreements that Canada has signed on the protection of foreign investment have major deficiencies and are based to some extent on NAFTA chapter 11. As I said in my speech, most of the agreements Canada has signed are bad. A tribunal such as ICSID, which is the subject of Bill C-53, will always judge, treat and evaluate things on the basis of the agreement that was signed between the two countries. We are talking here about Canadian foreign investment. One hundred and fifty-six countries have signed this convention and can go directly to the ICSID tribunal.
We have international relations and Canadian foreign investment. I understand that the laws of Canada and of the various provinces and Quebec take priority when we are dealing with people who are here. However, when we are dealing with foreigners, we need some basis. This basis is primarily the agreements that have been signed. Everything depends on that.
As I said and say once again, this is just a tribunal. There are also the agreements that were signed, and unfortunately, most of them are bad. They should all be renegotiated, just like chapter 11 of NAFTA.
This is the basis on which people can at least seek justice on the international scene for Canadian foreign investment. I do not think that the reverse happens very often because I hope that Canada treats foreign investors fairly. It does not allow them to do everything they want, of course, whenever they want, or to be more important and take precedence over all the laws and regulations of Canada, which must be obeyed. Justice should always be done, therefore, on the basis of the international agreements that were negotiated but are mostly bad. In the future, all these agreements should be submitted to the House so that we can evaluate them.
That being said, I would tell the NDP member that he should table the amendments to Bill C-53; that would reassure them.
Settlement of International Investment Disputes Act
Government Orders
May 15th, 2007 / 4:45 p.m.
See
context
NDP
Pat Martin Winnipeg Centre, MB
Mr. Speaker, my Bloc colleague's comments raised as many questions as they gave information about the view of this very complex international convention. The points made by the previous speaker, the member for Timmins—James Bay, cited a number of very legitimate concerns and provided reasons why the NDP will oppose Bill C-53.
The NDP is very concerned that the ICSID falls under the jurisdiction of the World Bank, an organization that the NDP has cited numerous concerns about in the past, partly in terms of transparency but also in terms accessibility for users of this tribunal process, this quasi-judicial arbitration process.
I am concerned that the House of Commons today, as we entertain Bill C-53, is not digging deep enough into how we envision this tribunal unfolding and the precedent setting status that it will have.
One of the most alarming concerns that I would like my colleague to comment on is that one of the arguments used by the government in favour of ratifying the international convention is that ICSID shelters foreign investors from the courts of any country or jurisdiction in which the investment is made. I thought we would be alarmed that we are setting up some kind of a dual parallel process that will shelter investors from the courts in the jurisdiction in which the investment is taking place.
In other words, this quasi-judicial arbitration process being set up by the World Bank will have precedence and primacy over the courts of the provinces of Quebec or Manitoba or the Federal Court if it, in fact, is an investment in the federal jurisdiction.
Are we prepared to cede that jurisdiction to an outside party such as the World Bank? Is our confidence in the World Bank such that we are willing to forgo our own court's jurisdiction? If we are interested in the best interests of Canadians, we should be throwing our confidence and faith in our own court system and let this foreign investor be judged by our high standards instead of a new arbitration process, which will likely be residenced in Washington, D.C. and under the jurisdiction of the World Bank.
