Canada signed the Convention on the Settlement of Investment Disputes between States and Nationals of Other States (ICSID) on 15 December 2006. The ICSID Convention, to which around 155 countries are signatories, allows investors from contracting states to resolve their disputes through arbitration and provides a reliable mechanism for the subsequent enforcement of arbitral awards.

Although Canada has a number of bilateral investment treaties in place, its accession to the ICSID Convention will provide a more wide-reaching and predictable framework for resolving disputes arising out of international investment. Canada has witnessed significant growth in outward and inward foreign investment over the past two decades and adopting the Convention will be a significant development both for Canadians investing in other ICSID countries and foreign nationals from ICSID contracting states investing in Canada.