oped than the regime established by NAFTA. This is yet another example of NAFTA rules going far beyond those in place under the WTO.As for the ambit of Chapter 12, Article 1201.1 provides: This Chapter applies to measures adopted or maintained by a Party relating to cross-border trade in service providers of another Party, including measures respecting:a.the production, distribution, marketing, sale and delivery of a service; b.the purchase or use of, or payment for, a service; c.the access to and use of distribution and transportation systems in connection with the provision of a service; d.the presence of a bond or other form of financial security as a condition for the provision of a service. Article 1201.1 wording indicates that the Chapter applies, inter alia, to US and Mexican companies supplying cross border services to Canadians. But, it also indicates that the Chapter would apply to a US or Mexican based water service provider, for example, operating in Canada for the purposes of providing cross-border services to another jurisdiction. We have not had an opportunity to review the drafting history of these provisions to determine whether this latter scenario was intended. In our view however, the plain meaning of these provisions is clear. Articles 1206 and 1207 allow for certain reservations and provide for the establishment of certain quantitative restrictions by listing to Annex V of the Agreement. Water is not a listed exception and we are aware of no other provision that would exempt water service providers from rights established by this Chapter. Therefore a company operating in these circumstances would be entitled to National Treatment under Article 1202 and the Standard of Treatment set out in Article 1204.Furthermore, and as is the case for Chapter 11, pursuant to the provisions of Article 2102: General Exceptions, GATT Article XX doesn’t apply to the provisions of Chapter 12. However, 2106.2 does provide: Provid...
