Centurion Health Corp vs.Government of Canada Notice of Arbitration and Statement Of Claim

UNDER THE ARBITRATION RULES OF THE UNITED NATIONS COMMISSION ON INTERNATIONAL TRADE LAW AND THE NORTH AMERICAN FREE TRADE AGREEMENT

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The Canadian public health care system is not shielded from NAFTA

nationalization/expropriation provisions,particularly private health care, if those private interests are excluded. Canada has assumed market access and national treatment commitments respecting health insurance under the General Agreement on Trade in Services (GATS). Canada is relying on Annex I reservation that grandfathers all nonconforming provincial measures existing on January 1, 1994 and by an Annex II reservation that covers health services established or maintained for a public purpose. However the expropriation provision is not covered by reservations. U.S. and Mexican investors have direct rights of action against the Canadian government for breaches of these provisions. The most important provisions of the WTO Agreement are the market access and national

treatment. Since however, the expansion of the public component of the health care system to private sector providers has in effect eroded the shield from full NAFTA national treatment requirements provided by Annex I reservation since 1994. The NAFTA agreements generally require that the federal government ensure compliance by provincial and local governments. NAFTA Article 1105 requires each NAFTA Party to ensure that all necessary measures are taken in order to give effect to NAFTA provisions, including (except where otherwise provided) their observance by provincial governments. A number of WTO agreements, notably the General Agreement on Trade in Services (GATS) and GATT 1994,4 set out express provisions requiring that Member countries ensure compliance by regional

governments. Compliance by provincial governments may be taken as the general rule both under NAFTA and the WTO agreements.

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Reference Info:Federal, U.S. Supreme Court | United States


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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