Water Resources and CETA: A Blueprint for Developing a Discipline for International Trade in Natural Resources

Abstract

The commercialisation (or not) of water resources is of strategic importance for nations and peoples. The recognition of access to water as a human right is now an established debate. Economic and population growth, as well as environmental changes, will only increase the importance of water as a natural resource. Considerations regarding ownership and development of water resources have been incorporated into the recent Comprehensive Economic and Trade Agreement (CETA) between Canada and the EU. CETA marks the first time that issues of access, ownership, and commercialisation of water resources are expressly tackled by an international trade agreement. This paper explores how CETA deals with the issue of water as a natural resource within international economic law, paying special attention to the problem of determining exactly when a natural resource becomes a ‘good’ or a ‘product’ for the purposes of trade. The paper also comments on how CETA’s treatment of water resources interacts with the concept of Permanent Sovereignty Over Natural Resources (PSNR). Finally, this paper will examine whether the water resource provision in CETA could be used as a blueprint for developing a discipline of international trade on natural resources. Natural resource sovereignty continues to be a concern for developing nations. They see their natural wealth as a key instrument in achieving the three ‘pillars’ of sustainable development, i.e. economic and social development, and environmental protection. The relevance of this paper lies in exploring new ways for future international trade and investment agreements to integrate these three ‘pillars’ of sustainable development. In doing so, this could set the foundations for developing a discipline for international trade in natural resources.