Mr. Speaker, with regard to international trade, the government’s top priority is creating jobs and economic opportunities for hard-working Canadians and their families.
Investor state dispute settlement, ISDS, has been a core element of Canada’s trade policy for more than a generation.
Trade and investment agreements protect Canadian investors abroad, including against discrimination and expropriation without compensation. They provide Canadian businesses with access to impartial recourse to an independent, international body to resolve disputes. ISDS allows Canadian investors to seek remedies directly for violations of investment protection obligations.
None of Canada’s trade and investment agreements prevent any level of government in Canada from regulating in the public interest, nor do they exempt foreign companies that operate in Canada from Canadian laws and regulations.
ISDS allows Canadian investors to bring claims directly against foreign governments. Therefore it is not possible for Canada to be a claimant in an investor state dispute. Canadian investors can and have been claimants abroad.
Canada has been a respondent in 22 investor state disputes: twelve are concluded, two were submitted to arbitration but were withdrawn, and eight are ongoing. The Government of Canada is committed to transparency in ISDS and therefore posts online information about all ongoing cases. For details, see: http://www.international.gc.ca/trade-agreements-accords-commerciaux/topics-domaines/disp-diff/gov.aspx?lang=eng.
ISDS allows Canadian investors to bring claims directly against foreign governments. Therefore it is not possible for Canada to be a claimant in an investor state dispute. Canadian investors can and have been claimants abroad.
Approximately $27,350,446.22 has been spent relating to the defence of its legal claims as a respondent. In three cases, the tribunal ordered $1,650,200.55 of these expenditure amounts to be reimbursed to Canada. This amount is not reflected here.
Since 1994, Canada has lost three investor state disputes as a respondent: S.D. Myers v. Canada, Pope & Talbot v. Canada and Mobil & Murphy v. Canada. In respect of these cases, Canada has paid the following: in the S.D. Myers v. Canada dispute, $6.9 million Canadian plus interest for legal costs and damages; and in the Pope & Talbot v. Canada dispute, $581,766 U.S., or approximately $6 million Canadian plus interest for a portion of the arbitral fees and damages. No payment has been made to date to Mobil & Murphy.
To the extent that the information that has been requested is protected by litigation privilege, the federal crown asserts that privilege and, in this case, has waived that privilege only to the extent of revealing the total aggregate legal cost.