ABSTRACT
American and Canadian IIA practices have evolved significantly since each state began their formal BIT programs and concluded their first BITs—the US-Egypt BIT (1986) and the Canada-USSR BIT (1989). A significant development for both states was the inclusion of an investment chapter in the NAFTA in 1992. 1 The IIA practice of both the United States and Canada has been significantly influenced by their experience of acting as respondents in investor-state arbitrations under NAFTA. The current model IIAs of both states, respectively the 2004 US Model BIT (“US Model”) 2 and the 2004 Canadian Model Foreign Investment Promotion and Protection Agreement (“Canadian Model”), 3 include procedural and substantive provisions that reflect Canadian and American concerns with various aspects of investor-state arbitration under NAFTA Chapter Eleven.
