International Arbitration Developments: Canada Strengthens Investor Protections

Canada has just passed legislation implementing the ICSID Convention, a very important tool for the resolution of investor-state disputes: Bill C-9, An Act to implement the Convention on the Settlement of Investment Disputes between States and Nationals of other States (ICSID Convention), received Royal Assent on March 14, 2007.

The Act enables the federal government to ratify the ICSID Convention, which it signed in December 2006.

Ratification of the ICSID Convention would be a significant step in furthering the federal government's "Global Commerce Strategy" of deepening Canadian access to global markets through an active international negotiations agenda. The move follows the recent signing of free trade agreements with the European Free Trade Association countries (Iceland, Norway, Switzerland and Liechtenstein) and Peru, and the conclusion of a bilateral investment treaty with Peru.