f its contents, the provincial government would be exposing provincial measures to trade disputes and investor-state claims that would be less likely to arise, or succeed, in the absence of the Accord. The second way in which an Accord may engender National Treatment obligations that would effectively enlarge the ambit of provincial obligations under Article 1102 has to do with concept of "watershed" which is presented by federal draft proposals as "the natural unit for managing water." Federal proposals concerning the Accord have described Canada as being divided into five major drainage basins or watersheds, each consisting of a series of smaller or regional watersheds. It is important to note that several of these watersheds cross international boundaries and that at least one extends far into the United StatesBecause these watersheds bridge inter-provincial and international boundaries the clear implication is that provincial measures must now be judged in this broader context. For example if a province enters into an Accord on the basis that it will manage on a watershed basis with one or more provinces or territories, it would be difficult in our view for it to meet the complaint that it has declined the same offer to US jurisdictions. It would, in other words, be in breach of its obligations to provide National Treatment to US investors or service providers by refusing to enter into similar management arrangements with respect to watersheds that cross the international boundary. Indeed, the federal governments description of watersheds as ‘Canadian’ is a misuse of the term (we assume inadvertent) because ‘watershed’ describes a geographical feature without regard to political boundaries. It is not surprising therefore that the concept of watersheds is problematic for initiatives intended to secure resources management prerogatives for political institutions with very different boundaries. This is particula...
