I. INTRODUCTION

1. Canada submits this Reply to the submissions of the Governments of the United States of America and the United Mexican States filed on February 14, 2014 pursuant to NAFTA Article 1128 (“U.S. Article 1128 Submission” and “Mexico Article 1128 Submission,” respectively).1

2. The submissions of the United States and Mexico confirm Canada’s interpretation of the NAFTA provisions at issue with respect to this Tribunal’s jurisdiction.

3. With respect to the interpretation of Article 1121, Canada, the United States and Mexico agree that:

 There is no consent to arbitration under Article 1122(1), and hence no jurisdiction for a NAFTA tribunal, unless a claimant acts consistently with the conditions precedent to the submission of a claim to arbitration. This includes a requirement for the claimant to file a valid waiver and act consistently with that waiver by abstaining from initiating or continuing domestic proceedings with respect to a measure alleged to breach the NAFTA;

 The phrase “any proceedings with respect to a measure” in Article 1121(1)(b) and 2(b) is to be interpreted broadly as per its ordinary meaning and to give effect to the object and purpose of the provision; therefore, compliance with Article 1121 involves considering whether a measure alleged to breach the NAFTA plays more than an incidental or tangential role in the domestic proceeding and whether a measure impugned in the domestic proceeding is separate and distinct from a measure alleged to breach the NAFTA; and

 The phrase “proceedings…before an administrative tribunal or court under the law of the disputing Party” in Article 1121(1)(b) and 2(b) means that injunctive, declaratory or other extraordinary relief may only be sought from courts or tribunals of the respondent NAFTA Party.

4. The submissions of the United States and Mexico also confirm Canada’s interpretation of the three-year time limitations provisions in Articles 1116(2) and 1117(2).2 The NAFTA Parties all agree that: