A Progressive Investment Agenda for Canada: Going beyond nice words

The report critiques Canada's historical reliance on an investment protection and liberalization model, specifically the use of investor-state dispute settlement (ISDS) mechanisms. It highlights how these frameworks have led to costly arbitrations against the Canadian government and limited the policy space of developing countries. While noting minor procedural shifts in CETA, the author contends that current treaties remain one-sided and recommends that upcoming public consultations on the model FIPA focus on promoting sustainable investment and corporate accountability rather than marginal procedural fixes.

• Since 2004, Canada has utilized an investment model focused on protection and liberalization, concluding 20 bilateral investment treaties (BITs) and nine free trade agreements (FTAs) with 25 developing country partners. This model prohibits host governments from requiring local content, technology transfer, or research and development to promote their own economic development.
• The investor-state dispute settlement (ISDS) mechanism has resulted in significant financial liabilities for Canada. Of 27 cases brought against Canada, 26 were by U.S. investors under NAFTA, including challenges to environmental measures. Canada has paid USD 37 million in four decided cases and USD 136 million in two disclosed settlements, with at least seven cases still pending.
• Canadian companies have initiated 45 lawsuits against governments via BITs and FTAs, with 17 under NAFTA and 25 under Canadian BITs or other FTAs. The largest award granted against a developing country reached USD 1.2 billion.
• Recent agreements like CETA and CPTPP do not represent a truly progressive shift. While CETA introduced a more permanent judicial ISDS and prevents claims based on corruption, CPTPP lacks these elements. Both agreements maintain a narrow focus on investment protection and liberalization, with corporate social responsibility (CSR) provisions remaining merely voluntary.

APA

Bernasconi-Osterwalder,, N. (2018). A Progressive Investment Agenda for Canada: Going beyond nice words. International Institute for Sustainable Development. https://www.iisd.org/articles/policy-analysis/progressive-investment-agenda-canada-going-beyond-nice-words

Chicago

Bernasconi-Osterwalder,, Nathalie. A Progressive Investment Agenda for Canada: Going beyond nice words. International Institute for Sustainable Development, 2018. https://www.iisd.org/articles/policy-analysis/progressive-investment-agenda-canada-going-beyond-nice-words.

Wikipedia

{{cite report |last1=Bernasconi-Osterwalder, |first1=Nathalie |title=A Progressive Investment Agenda for Canada: Going beyond nice words |publisher=International Institute for Sustainable Development |date=9 August 2018 |url=https://www.iisd.org/articles/policy-analysis/progressive-investment-agenda-canada-going-beyond-nice-words |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{bernasconiosterwalder2018progressive, author = {Bernasconi-Osterwalder,, Nathalie}, title = {{A Progressive Investment Agenda for Canada: Going beyond nice words}}, institution = {International Institute for Sustainable Development}, year = {2018}, month = aug, url = {https://www.iisd.org/articles/policy-analysis/progressive-investment-agenda-canada-going-beyond-nice-words}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }