Court upholds corporate rights under NAFTA

Council of Canadians says judgment fails to acknowledge impact of trade agreements on domestic policy and the constitution

December 1, 2006 (OTTAWA) – Yesterday’s decision by the Ontario Court of Appeal upholding the constitutionality of the North American Free Trade Agreement (NAFTA) fails to acknowledge the enormous influence of international trade agreements on domestic policy, law and the constitution, according to the Council of Canadians.

The Council, the Canadian Union of Postal Workers (CUPW) and the Charter Committee on Poverty Issues (CCPI) had argued that NAFTA creates foreign-investor rights that infringe on Canadian sovereignty, and that are enforced in a way that is neither transparent nor subject to proper review.

Unfortunately the Court of Appeal has now confirmed the Ontario Superior Court’s decision, arguing that because investor-state litigation is a part of an international trade agreement, it doesn’t infringe on the jurisdiction of domestic courts.

While the Council of Canadians is disappointed with the Court’s decision, the organization remains committed to defending Canadian sovereignty against the incursions of NAFTA, and fighting the new threat posed by the Security and Prosperity Partnership of North America. The Council will also consider taking steps to appeal to the Supreme Court of Canada.

Click here to read the Council of Canadians’ analysis of the Court’s decision.

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updated February 11, 2011