Canada Model BIT (2004)
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1. The application for leave to file a non-disputing party submission shall:

(a) be made in writing, dated and signed by the person filing the application, and include the address and other contact details of the applicant;

(b) be no longer than 5 typed pages;

(c) describe the applicant, including, where relevant, its membership and legal status e.g., company, trade association or other non-governmental organization), its general objectives, the nature of its activities, and any parent organization (including any organization that directly or indirectly controls the applicant);

(d) disclose whether the applicant has any affiliation, direct or indirect, with any disputing party;

(e) identify any government, person or organization that has provided any financial or other assistance in preparing the submission;

(f) specify the nature of the interest that the applicant has in the arbitration;

(g) identify the specific issues of fact or law in the arbitration that the applicant has addressed in its written submission;

(h) explain, by reference to the factors specified in Article 39(4), why the Tribunal should accept the submission; and

(i) be made in a language of the arbitration.

The submission filed by a non-disputing party shall:

(a) be dated and signed by the person filing the submission;

(b) be concise, and in no case longer than 20 typed pages, including any appendices;

(c) set out a precise statement supporting the applicant’s position on the issues; and

(d) only address matters within the scope of the dispute.

Section D. State-to-State Dispute Settlement Procedures

Article 48. Disputes between the Parties

1. Either Party may request consultations on the interpretation or application of this Agreement. The other Party shall give sympathetic consideration to the request. Any dispute between the Parties concerning the interpretation or application of this Agreement shall, whenever possible, be settled amicably through consultations.

2. If a dispute cannot be settled through consultations, it shall, at the request of either Party, be submitted to an arbitral panel for decision.

3. An arbitral panel shall be constituted for each dispute. Within two months after receipt through diplomatic channels of the request for arbitration, each Party shall appoint one member to the arbitral panel. The two members shall then select a national of a third State who, upon approval by the two Parties, shall be appointed Chairman of the arbitral panel. The Chairman shall be appointed within two months from the date of appointment of the other two members of the arbitral panel.

4. If within the periods specified in paragraph (3) of this Article the necessary appointments have not been made, either Party may invite the President of the International Court of Justice to make the necessary appointments. If the President is a national of either Party or is otherwise prevented from discharging the said function, the Vice-President shall be invited to make the necessary appointments. If the Vice- President is a national of either Party or is prevented from discharging the said function, the Member of the International Court of Justice next in seniority, who is not a national of either Party, shall be invited to make the necessary appointments.

5. Arbitrators shall:

(a) have expertise or experience in public international law, international trade or international investment rules, or the resolution of disputes arising under international trade or international investment agreements;

(b) be independent of, and not be affiliated with or take instructions from, either Party; and

(c) comply with any Code of Conduct for Dispute Settlement as agreed by the Commission.

6. Where a Party claims that a dispute involves measures relating to financial institutions, or to investors or investments of such investors in financial institutions, then

(a) where the disputing Parties are in agreement, the arbitrators shall, in addition to the criteria set out in paragraph 5, have expertise or experience in financial services law or practice, which may include the regulation of financial institutions; or

(b) where the disputing Parties are not in agreement,

(i) each disputing Party may select arbitrators who meet the qualifications set out in subparagraph (a), and

(ii) if the Party complained against invokes Articles 14(6) or 17, the chair of the panel shall meet the qualifications set out in subparagraph (a).

7. The arbitral panel shall determine its own procedure. The arbitral panel shall teach its decision by a majority of votes. Such decision shall be binding on both Parties. Unless otherwise agreed, the decision of the arbitral panel shall be rendered within six months of the appointment of the Chairman in accordance with paragraphs (3) or (4) of this Article.

8. Each Party shall bear the costs of its own member of the panel and of its representation in the arbitral proceedings; the costs related to the Chairman and any remaining costs shall be borne equally by the Parties. The arbitral panel may, however, in its decision direct that a higher proportion of costs be borne by one of the two Parties, and this award shall be binding on both Parties.

9. The Parties shall, within 60 days of the decision of a panel, reach agreement on the manner in which to resolve their dispute. Such agreement shall normally implement the decision of the panel. If the Parties fail to reach agreement, the Party bringing the dispute shall be entitled to compensation or to suspend benefits of equivalent value to those awarded by the panel.

Section E. Final Provisions

Article 49. Consultations

A Party may request in writing consultation with the other Party regarding any actual or proposed measure or any other matter that it considers might affect the operation of this Agreement.

Article 50. Extent of Obligations

The Parties shall ensure that all necessary measures are taken in order to give effect to the provisions of this Agreement, including their observance, except as otherwise provided in this Agreement, by sub-national governments.

Article 51. Commission

1. The Parties hereby agree to establish a Commission, comprising cabinet -level representatives of the Parties or their designees.

2. The Commission shall:

(a) supervise the implementation of this Agreement;

(b) resolve disputes that may arise regarding its interpretation or application;

(c) consider any other matter that may affect the operation of this Agreement;

(d) adopt a Code of Conduct for Arbitrators.

3. The Commission may take such other action in the exercise of its functions as the Parties may agree, including amendment of the Code of Conduct for Arbitrators.

4 The Commission shall establish its rules and procedures.

Article 52. Application and Entry Into Force

1. The Annexes hereto shall form integral parts hereof.

2. Each Party shall notify the other in writing of the completion of the procedures required in its territory for the entry into force of this Agreement. This Agreement shall enter into force on the date of the latter of the two notifications.

3. This Agreement shall remain in force unless either Party notifies the other Party in writing of its intention to terminate it. The termination of this Agreement shall become effective one year after notice of termination has been received by the other Party. In respect of investments or commitments to invest made prior to the date when the termination of this Agreement becomes effective, the provisions of Articles 1 to 51 inclusive, as well as paragraphs (1) and (2) of this Article, shall remain in force for a period of fifteen years.

Annex I. Reservations for Existing Measures and Liberalization Commitments

Schedule of Canada......

Schedule of the other Party......

Annex II. Reservations for Future Measures

Schedule of Canada......

Schedule of the other Party......

Annex III. Exceptions from Most-Favoured-Nation Treatment

1 Article 4 shall not apply to treatment accorded under all bilateral or multilateral international agreements in force or signed prior to the date of entry into of this Agreement.

2. Article 4 shall not apply to treatment by a Party pursuant to any existing or future bilateral or multilateral agreement:

(a) establishing, strengthening or expanding a free trade area or customs union;

(b) relating to:

(i) aviation;

(ii) fisheries;

(iii) maritime matters, including salvage.

3. For greater certainty, Article 4 shall not apply to any current or future foreign aid programme to promote economic development, whether under a bilateral agreement, or pursuant to a multilateral arrangement or agreement, such as the OECD Agreement on Export Credits.

IV. Exclusions from Dispute Settlement

1. A decision by Canada following a review under the Investment Canada Act, with respect to whether or not to permit an acquisition that is subject to review, shall not be subject to the dispute settlement provisions under Sections C or D of this Agreement

2. Issues relating to the administration or enforcement of Canada's Competition Act, its regulations, policies and practices, or any successor legislation, policies and practices and any decision pursuant to the Competition Act made in any cases or patterns of cases by the Commissioner of Competition, Attorney General of Canada, the Competition Tribunal, the responsible Minister or the courts, shall not be subject to the dispute settlement provisions under Sections C or D of this Agreement.

Side letter Code of Conduct (as agreed by the Commission)

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  • Section   A Definitions 1
  • Article   1 Definitions 1
  • Section   B Substantive Obligations 1
  • Article   2 Scope 1
  • Article   3 National Treatment 1
  • Article   4 Most-Favoured- Nation Treatment (1) 1
  • Article   5 Minimum Standard of Treatment 1
  • Article   6 Senior Management, Boards of Directors and Entry of Personnel 1
  • Article   7 Performance Requirements 1
  • Article   8 Monopolies and State Enterprises (3) 1
  • Article   9 Reservations and Exceptions 1
  • Article   10 General Exceptions 2
  • Article   11 Health, Safety and Environmental Measures 2
  • Article   12 Compensation for Losses 2
  • Article   13 Expropriation (6) 2
  • Article   14 Transfer of Funds 2
  • Article   15 Subrogation 2
  • Article   16 Taxation Measures 2
  • Article   17 Prudential Measures 2
  • Article   18 Denial of Benefits 2
  • Article   19 Transparency (7) 2
  • Annex B.13(1)  Expropriation 2
  • Section   C Settlement of Disputes between an Investor and the Host Party 2
  • Article   20 Purpose 2
  • Article   21 Limitation of Claims with Respect to Financial Institutions 2
  • Article   22 Claim by an Investor of a Party on Its Own Behalf 2
  • Article   23 Claim by an Investor of a Party on Behalf of an Enterprise 2
  • Article   24 Notice of Intent to Submit a Claim to Arbitration 2
  • Article   25 Settlement of a Claim Through Consultation 2
  • Article   26 Conditions Precedent to Submission of a Claim to Arbitration 2
  • Article   27 Submission of a Claim to Arbitration 2
  • Article   28 Consent to Arbitration 2
  • Article   29 Arbitrators 3
  • Article   30 Constitution of a Tribunal When a Party Fails to Appoint an Arbitrator or the Disputing Parties Are Unable to Agree on a Presiding Arbitrator 3
  • Article   31 Agreement to Appointment of Arbitrators 3
  • Article   32 Consolidation 3
  • Article   33 Notice to the Non-Disputing Party 3
  • Article   34 Documents 3
  • Article   35 Participation by the Non-Disputing Party 3
  • Article   36 Place of Arbitration 3
  • Article   37 Preliminary Objections to Jurisdiction or Admissibility 3
  • Article   38 Public Access to Hearings and Documents 3
  • Article   39 Submissions by a Non- Disputing Party 3
  • Article   40 Governing Law 3
  • Article   41 Interpretation of Annexes 3
  • Article   42 Expert Reports 3
  • Article   43 Interim Measures of Protection 3
  • Article   44 Final Award 3
  • Article   45 Finality and Enforcement of an Award 3
  • Article   46 General 3
  • Article   47 Exclusions 3
  • Annex C.26  Standard Waiver and Consent in Accordance with Article 26 of this Agreement 3
  • Form 1  3
  • Form2  3
  • Form 3  3
  • Form 4  3
  • Annex C.39  Submissions by Non-Disputing Parties 4
  • Section   D State-to-State Dispute Settlement Procedures 4
  • Article   48 Disputes between the Parties 4
  • Section   E Final Provisions 4
  • Article   49 Consultations 4
  • Article   50 Extent of Obligations 4
  • Article   51 Commission 4
  • Article   52 Application and Entry Into Force 4
  • Annex I  Reservations for Existing Measures and Liberalization Commitments 4
  • Annex II  Reservations for Future Measures 4
  • Annex III  Exceptions from Most-Favoured-Nation Treatment 4
  • IV  Exclusions from Dispute Settlement 4
  • Side letter Code of Conduct (as agreed by the Commission) 4