1. Each contracting party allows any transfer related to an investment by an investor of another contracting party in the territory of the contracting party to be carried out freely and without delay. These transfers include: private investors and a number of declarations of intent to file a file. Given the $1.7 billion per day in north American trade and the more than $250 billion in new cross-border investment since 1994, this seems to be a small number. The Canadian government has recognized the importance of FIPA, which in recent years has prioritized negotiations and ratification of more new FIPAs. This is consistent with Canada`s position to become a net exporter of foreign direct investment, based on its previous status as a net importer of direct investment. In addition, the high prices of Canadian investors who have claimed receivables under IFs also demonstrate the importance of the agreements. The rewards of $1 billion in a single arbitration are not uncommon – and are in stark contradiction to the US$215 million paid by Canada over a 23-year period, more than half of which were paid to settle a case due to unquestionably inappropriate acts by the Government of Newfoundland. The Canadian government, in the process of major NAFTA Chapter 11 renegotiations, must balance the protection it seeks to regulate domestic territory and promote the objectives of law and order with the legitimate confidence of Canadian businesses (and their owners and other interest groups) that invest abroad. Canadian investors need free trade agreements and IFs to ensure that their long-term investments are protected by high treatment standards and effective dispute resolution mechanisms. Millar KREKLEWETZ LLP is a Canadian boutique firm with lawyers with extensive customs and trade expertise under the North American Free Trade Agreement (NAFTA), including investor disputes arising from NAFTA Chapter 11 dispute settlement rules.
In addition to a series of free trade agreements, such as NAFTA, that contain investor-state arbitration provisions, Canada has also signed, ratified or concluded 43 PSFs that are in force but have not yet been signed.