North America

Canada and the United States have signed about 180 investment agreements.

They are both party to the North American Free Trade Agreement (NAFTA) with Mexico. Sixty-seven disputes were launched under NAFTA.

NAFTA was recently renegotiated and replaced by the US-Mexico-Canada Agreement (USMCA) that was signed in November 2018 and is yet to enter in force. The investor-state dispute settlement (ISDS) mechanism between the US and Canada, and between Mexico and Canada has been removed – even though it is included in the Trans-Pacific Partnership, to which both Mexico and Canada belong. Only limited claims are allowed between the US and Mexico, after exhaustion of local remedies. But the ISDS mechanism has been maintained between the two countries for claims pertaining to Mexico’s oil and gas sector.

The US is also party to the Dominican Republic–Central America Free Trade Agreement (CAFTA), with six Central American states. US investors have initiated all 11 known CAFTA disputes.

Canada has an investment treaty with China and is party to the Comprehensive Economic and Trade Agreement (CETA) with the European Union. CETA includes a revised ISDS mechanism, the investment court system, which has been critiqued for not addressing the core of the problem behind the mechanism.

US investors have extensively used the ISDS mechanism. They have initiated around 180 disputes, over 17% of all known cases, making the US the most frequent home state of investors. The US has never lost an ISDS case.

Canadian investors have initiated about 50 disputes and Canada has been the fourth most frequent target among ‘developed’ states (9th globally), with 29 cases.

Photo: Public Citizen

(April 2020)

CEPR | 2-Apr-2025
Ecuador’s free trade agreement with Canada presents a glaring conflict of interest for President Noboa, whose family, one of Ecuador’s wealthiest, has a sizable financial stake in a Canada-based mining company.
Reuters | 2-Apr-2025
First Quantum Minerals said it had agreed to discontinue two arbitration proceedings related to its Cobre Panama copper mine.
La Presse | 2-Apr-2025
First Quantum Minerals a annoncé avoir accepté de mettre fin à la procédure d’arbitrage en vertu de l’Accord de libre-échange Canada-Panama.
TNI | 26-Mar-2025
Despite criticism of the free trade agreement with the United States, Colombian President Gustavo Petro opted to reassess a series of clauses on investments and arbitration, instead of requesting a complete renegotiation.
Foreign Policy in Focus | 25-Mar-2025
Extraordinary corporate privileges in US foreign and trade policy are designed to help companies win even when their investments fail.
Financial Post | 24-Mar-2025
Almadex has filed its memorial submission relating to its international arbitration proceedings under the Comprehensive and Progressive Agreement for Trans-Pacific Partnership with Mexico, seeking damages of US$1.06 billion.
Yonhap | 24-Mar-2025
South Korea has lost a lawsuit seeking to annul an investor-state dispute settlement (ISDS) ruling that ordered it to pay compensation to US hedge fund Mason Capital over losses from Samsung’s controversial 2015 merger of two units.
Chosun Biz | 17-Mar-2025
Korean government and Lone Star to present final arguments in landmark arbitration case over compensation disputes.
América Economía | 14-Mar-2025
Según el inversionista de Rutas de Lima, ya dos tribunales internacionales, así como una corte federal en EE.UU. han ordenado el pago de más de US$ 200 millones en favor de Rutas de Lima como compensaciones por incumplimientos del contrato de concesión por parte de la Municipalidad de Lima.
Financial Post | 14-Mar-2025
The action is being taken under the umbrella of the free trade agreement between Peru and Canada.