65 U. Toronto Fac. L. Rev. 107 (2007)
NAFTA Chapter XI and Canada's Environmental Sovereignty: Investment Flows, Article 1110 and Alberta's Water Act

handle is hein.journals/utflr65 and id is 175 raw text is: NAFTA CHAPTER XI AND CANADA'S ENVIRONMENTAL SOVEREIGNTY:
INVESTMENT FLOWS, ARTICLE 1110 AND ALBERTA'S WATER ACT*
JOSEPH CUMMING**
ROBERT FROEHLICH***
I         INTRODUCTION ......................................................................................... 109
II        BACKGROUND ........................................................................................... 110
Foreign Direct Investment ........................................................................... 110
Past, Present and Future Canadian Treatment of FDI .............................. 111
Policy Objectives of NAFTA Chapter XI .................................................... 112
III       CANADA'S INVESTMENT OBLIGATIONS UNDER THE FTA AND NAFTA .......... 114
Chapter XVI of the FTA ............................................................................... 114
Chapter XI of NAFTA .................................................................................. 115
IV        THE INCONSISTENT TREATMENT OF CANADA'S INVESTMENT OBLIGATIONS:
EXPROPRIATION &        REGULATORY TAKING DECISIONS ................................ 116
Case  Law   Review   .......................................................................................... 116
Ethyl Corporation v. Government of Canada ........................................... 116
Sun Belt Water Inc. v. Government of Canada ......................................... 117
Pope & Talbot Inc. v. Government of Canada .......................................... 118
Metalclad Corporation v. The United Mexican States .............................. 119
S.D. Myers Inc. v. Government of Canada ............................................... 121
Methanex Corporation v. United States of America ................................. 123
Conclusions on Article 1110 Case Law ........................................................ 124
V         EXAMPLE OF AN ARTICLE 1110 CLAIM ARISING UNDER
Alberta's   Water Act ............................................................................................ 125
Factual Context ............................................................................................. 125
Application of the International Investment Jurisprudence .................... 126
Investor and  Investm  ent Thresholds ......................................................... 126
E xpropriation  ............................................................................................ 126
O utcom  e  of the  C laim   ............................................................................... 129
O ther  O ptions  for  Canada ......................................................................... 131
The authors gratefully acknowledge the assistance of J. Owen Saunders, Executive Director of the
Canadian Institute of Resources Law, for his valuable guidance and input into the preparation of
this article. Any errors or omissions are those of the authors alone, and do not represent the views
of Macleod Dixon LLP and/or McCarthy Tetrault LLP.
B.Comm. (Hons.) (Queen's), LL.B. (Calgary), Court of Appeal for Alberta (Law Clerk), McCarthy
Tdtrault LLP (Articling Student)
... B.A. distinction (Calgary), B.A. distinction (Calgary), LLB (Calgary). Student-at-Law with Ma-
cleod Dixon LLP in Calgary.
University of Toronto Faculty of Law Review / Volume 65 Number 2 / Spring 2007
107

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