A new voluntary process for resolving international investment disputes is to take effect late this year, the British Columbia government announced Tuesday.
The government expects the process will make the province more attractive to investors, and benefit B.C. residents investing abroad.
The province said that it is bringing the Settlement of International Investment Disputes Act into force on June 1, which will sign it on to an international convention that provides for an independent, voluntary arbitration process to resolve cross-border investment disputes.
Members of the convention are able to settle investment disputes through the International Centre for Settlement of Investment Disputes, which is a venue that offers qualified arbitrators with international investment expertise.
B.C. residents will be able to use the centre as an alternative to using other nations’ judicial systems, which may not offer the same expertise or neutrality. Participation in this form of dispute resolution is voluntary, and decisions are final and enforceable.
B.C. first passed the legislation in 2006 in anticipation of Canada’s ratification of the convention. Now, it says that the federal minister of international trade has advised that it intends to ratify the convention in 2013, and that it is appropriate for B.C. to enact supporting legislation.
“By signing onto this convention, we’re showing potential investors in B.C. that they have a trustworthy and voluntary way to resolve any investment disputes that may occur here,” said BC’s minister of justice and attorney general, Shirley Bond.