hed by NAFTA should be Canada’s first international priority. We have identified several options for insulating Canadian water export control measures from challenges and/or claims brought pursuant to NAFTA provisions. Of these, a broad exclusion similar to the one established by NAFTA for national security measures is likely to be the most effective. A similar approach might be adopted for addressing potential conflicts with WTO rules. Finally, because challenges to prospective Canadian water export controls are likely to emanate from the US, we believe that it would also be highly desirable for Canada to negotiate a bi-lateral agreement with the US that explicitly recognizes the sovereign prerogatives of each country to manage its water resources. That agreement should stipulate that its provisions will prevail in the event of conflict with international trade and investment agreements. ...
