Canada Investor-State Case Raises Questions On Provincial Responsibility

The settlement late last month of an investor-state lawsuit brought under the North American Free Trade Agreement (NAFTA) by a U.S. paper company against the government of Canada is raising questions over how the Canadian federal government will in future deal with settlements rising from actions by provincial governments. The $130 million settlement, announced Aug. 24, marks the first time the federal Canadian government has paid damages as a result of a policy decision by one of its provinces, but...