Interpretation and Application of the New York Convention in Canada

Abstract

Canada’s adoption of the New York Convention was part of a coordinated federal-provincial effort to modernize arbitration law throughout the country. What has emerged is that, in general, Canadian courts adhere to the pro-enforcement ethos of the Convention. As such, courts have kept grounds for refusal of enforcement, particularly in respect of public policy and arbitrability, tightly regimented. Further, courts have assumed a residual discretion to recognize and enforce awards even in the presence of an established ground for refusal. The principal problems relating to implementation of the Convention have been the determination of an appropriate standard of review at the referral stage, the determination of the time limitation for seeking enforcement of a foreign award, and the identification of the appropriate interpretive standard to determine subject-matter arbitrability. However as detailed below, the Supreme Court of Canada has, in part, resolved these difficulties.