1. Introduction

1. Pursuant to Procedural Order No. 1 dated December 20, 2012, Canada respectfully submits its views on the appropriate place of arbitration for this NAFTA Chapter 11 arbitration.

2. The facts of this case and the applicable law weigh in favour of Toronto, Ontario as the most appropriate place of arbitration. The Claimant Detroit International Bridge Company (“DIBC”) disagrees and proposed in its Notice of Arbitration that the place of arbitration should be Washington, D.C.1

3. Pursuant to Article 18 of the UNCITRAL Arbitration Rules, 2010 (“UNCITRAL Arbitration Rules”) where the disputing parties disagree, the Tribunal shall determine the place of arbitration.2

4. The Claimant alleges that the Governments of Canada, Ontario and Windsor have taken measures that caused damage to its investment, the Ambassador Bridge, which crosses the international border on the Detroit River between Windsor, Ontario and Detroit, Michigan. The Canadian half of the Ambassador Bridge is owned by the Claimant’s subsidiary, Canadian Transit Company (“CTC”), headquartered in Windsor, Ontario. Accordingly, virtually all of the relevant witnesses, stakeholders and evidence from both disputing parties relating to this dispute will be found within the Province of Ontario and in close proximity to Toronto. This is a decisive factor when considering the place of arbitration because, among other reasons, it will readily facilitate any judicial assistance in aid of arbitration the disputing parties and the Tribunal may require.

5. Furthermore, the law applicable to international arbitration in Canada and Ontario encapsulate the highest international standards as they are based on the UNCITRAL Model Law and the New York Convention on Enforcement of Arbitral Awards. The independence and impartiality of Canadian courts are also above reproach. Toronto has been designated as the place of arbitration in thirteen NAFTA Chapter 11 disputes, including seven against the Government of Canada, demonstrating the confidence past NAFTA Chapter 11 tribunals have had in selecting Canada as the legal seat, even when Canada is the respondent Party. Taking into account all the relevant factors, Toronto is the most suitable place of arbitration for this dispute.