WHO OWNS “YOUR” WATER?

The document examines the intersection of international trade law and water management, arguing that while states maintain formal jurisdiction over water, investment agreements can severely limit their regulatory autonomy. It highlights risks such as the 'locking-in' of weak domestic water regimes and the use of investor-state arbitration to challenge environmental regulations or water usage limits. The author advocates for treating water as a special resource in negotiations, improving domestic legal frameworks before privatizing services, and increasing transparency in investment disputes.

• Under NAFTA, water in its natural state is not considered a good or product; however, once water enters commerce—such as through a diversion project or being sold in packages—it becomes a good subject to trade rules.
• There is a significant risk that a single permit to export water in bulk (e.g., via tankers) could establish that water from a specific region has entered commerce, potentially requiring the state to grant equal, non-discriminatory access to other sellers.
• While trade law generally does not mandate the privatization of water services, states that choose to open these sectors to the private sector must grant foreign investors equal opportunities and protections under NAFTA Chapter 11 or Bilateral Investment Agreements (BITs).
• Foreign investors can use investor-state arbitration to bypass domestic legal systems and claim compensation for 'expropriation' if a state reduces allowed water usage levels or implements new anti-pollution rules that impact their investment.
• International trade and investment agreements risk 'locking in' weak or corrupt domestic water management practices, making subsequent legal or administrative improvements costly or difficult to implement.
• To prevent loss of control over water, the author recommends that states improve their domestic legal and administrative frameworks before entering into investment agreements or privatizing water services.

APA

MANN, H. (2003). WHO OWNS “YOUR” WATER? International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/trade_who_owns_water_II.pdf

Chicago

MANN, HOWARD. WHO OWNS “YOUR” WATER? International Institute for Sustainable Development, 2003. https://www.iisd.org/system/files/publications/trade_who_owns_water_II.pdf.

Wikipedia

{{cite report |last1=MANN |first1=HOWARD |title=WHO OWNS “YOUR” WATER? |publisher=International Institute for Sustainable Development |date=August 2003 |url=https://www.iisd.org/system/files/publications/trade_who_owns_water_II.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{mann2003who, author = {MANN, HOWARD}, title = {{WHO OWNS “YOUR” WATER?}}, institution = {International Institute for Sustainable Development}, year = {2003}, month = aug, url = {https://www.iisd.org/system/files/publications/trade_who_owns_water_II.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }