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Great Lakes Article:

Proposed Annex 2001 to the Great Lakes Charter Comments from the Government
of Canada on Annex 2001 to the Council of Great Lakes Governors

Canada welcomes the opportunity provided by the Council of Great Lakes Governors to comment on the proposed Annex 2001 to the Great Lakes Charter. As a Party to the 1909 Boundary Waters Treaty, and therefore responsible, together with the United States, for the rights and obligations contained in the Treaty, Canada considers the Treaty to be fundamentally important to protecting the shared waters of the Great Lakes. Also, through its responsibilities for the Great Lakes, Canada continues to invest millions of dollars in protecting the ecological integrity of the Great Lakes Basin.

Canada appreciates the key role played by the members of the Great Lakes Charter (the eight Great Lakes states, and Ontario and Quebec) in the management and protection of the Great Lakes. Canada does, however, have serious concerns about the proposed standard in the Annex which would allow for removals of water out of the Great Lakes Basin, and about the relationship of the Annex to the Boundary Waters Treaty.

Canada supports the recommendations of the International Joint Commission (IJC) February 2000 report Protection of the Waters of the Great Lakes.

Introduction

Canada recognizes the ongoing efforts of the members of the Great Lakes Charter to arrive at new, common standards and procedures for decisions concerning removals or major new or increased consumptive uses, as well as efforts directed at improving the information on existing and potential uses and withdrawals, and the promotion of water efficiency and conservation. There is a long history of constructive work within and between the eight Great Lakes states, and Ontario and Quebec. This work has made a critical contribution to the improvement over the past 40 years of the water quality of the Great Lakes. Indeed, in the years ahead, the environmental challenges on the Great Lakes will increase, requiring the same strong commitment and cooperation from all levels of government in Canada and the U.S.

Canada endorses actions by the Charter members which will contribute to better management and protection of the shared waters of the Great Lakes. A number of the principles and measures outlined in the Annex are consistent with this objective. However, Canada has concerns with the proposed Annex in the following areas:

the standard proposed is too permissive, and could compromise the ecological integrity of the Great Lakes Basin by the cumulative impacts of diversions below the de minimis threshold, as well as by opening the door to long-distance, large-scale removals out of the basin;

there are a number of unanswered legal and jurisdictional questions, not the least of which is the possibility of conflict between the Annex and the
Boundary Waters Treaty, thereby diminishing the importance of the
protections the latter offers to the Great Lakes; and,

there should be greater clarity on a number of important aspects related to implementation, as these would have a significant impact on how the Annex is applied.

The Standard

Canada considers that the standard proposed in the Annex is too permissive. The standard could open the door to long-distance, large-scale bulk removals out of the Great Lakes. In addition, the de minimis provisions are set too high for removals out of the basin and do not take sufficient account of the cumulative effect of many projects and other stresses on the ecosystem.

Recognizing that improved conservation measures for consumption within the Great Lakes Basin are a high priority, Canada considers that an environmental approach which treats in-basin and out-of-basin uses
differently is the most effective way of protecting the Great Lakes.
Prohibiting diversions between major basins is an effective means of
preventing the spread of invasive species, pathogens and pollutants, and
recognizes that the sustainability of ecosystems and communities within the basin is dependent on a natural supply of water.

Bulk removal outside the basin represents a permanent loss to the basin and is not a sustainable use of water. When water is withdrawn within the water basin, most of it usually returns to the boundary waters by a natural
route-on average, there is essentially no or little loss to the system.
Consumptive losses within the basin should not be equated to removals out of the basin.

The IJC adopted this approach in its conclusions and recommendations to the report Protection of the Waters of the Great Lakes. Canada notes that the IJC considers that their recommendations are consistent with international trade obligations, a position the Government of Canada fully endorses. The IJC, as well as formal submissions by the governments of Canada and the United States, reaffirmed the principle that governments retain full sovereignty over the management of water in its natural state, and in exercising this sovereignty are not constrained by international trade agreements.

Canada considers that the IJC recommendations on removals represent an excellent blueprint for addressing the multi-dimensional,
multi-jurisdictional aspects of the issue. These recommendations, while not as strict as those adopted by Canada, or by Ontario and Quebec, represent a viable solution to the concerns of all jurisdictions within the Great Lakes Basin. Canada is deeply concerned at the prospect of a regime being established which is less rigorous than that recommended by the IJC.

Legal Considerations

The Boundary Waters Treaty has been the bedrock of Canada-U.S. joint
management of the Great Lakes for over 90 years. For the 40 million
Canadians and Americans dependent on the shared waters of the Great Lakes, the Treaty represents a fundamental protection and assurance. The elements of the proposed Annex raise a number of concerns for Canada regarding the relationship with and effect on the Treaty and the IJC.

The Treaty establishes rights and obligations between Canada and the United States with respect to boundary waters. The application of provisions in the Annex that might establish a different regime with different standards and procedures could affect the ability of both countries to respect and comply with their Treaty obligations to the other and result in a weakening of the protections in the Treaty.

As presently drafted, and as described in associated material from the
Council, the Annex is presented as a binding agreement between Canadian provinces and U.S. states. This is contrary to international law and the Constitution of Canada. If such a binding agreement is not in fact the intention of the Annex, there still remain a number of questions:

what is the potential for conflict between the Annex and the Treaty, as a
result of two standards or regimes on the Great Lakes? For example, a
project in a connecting waterway, approved by the standard in the Annex,
could result in a change to the level and flow on the other side of the
boundary and thus trigger IJC jurisdiction under Article III of the Treaty.
While that project might have received approval under the Annex mechanism it would still require approval by the IJC and, depending on the location, the governments of Canada and/or the United States.

is the standard under the Annex compatible with Article IV, paragraph 2 of the Treaty (dealing with pollution) and the Great Lakes Water Quality
Agreement (GLWQA)? There is considerable uncertainty.

as the Annex does not contain the same priorities and provisions as Article VIII of the Treaty, could there not be a clash between the priority system established under Article VIII of the Treaty and the new mechanism?

since Article V of the Annex commits to a series of obligations to improve the Great Lakes water management system, including to "identify and implement effective mechanisms for decision-making and dispute resolutions", what would be the relationship between these "mechanisms" and the existing Treaty regime, including the IJC and the GLWQA?

These questions, inter alia, raise fundamental concerns on Canada's part, concerns which Canada intends to discuss with the U.S. Department of State in greater detail.

Implementation

As the questions identified above demonstrate, many factors critical to the implementation of the Annex are not known. Given that these might well have a significant effect on the operation of the Treaty, great care is essential so as to avoid the possibility of overlap or conflict between the Treaty and the Annex.

Canada's Initiative on Bulk Water Removal

Canada announced a strategy in February 1999 to prohibit bulk water removal out of major drainage basins. All provinces have in place or are developing legislation or regulations to prohibit bulk water removal. On February 5, 2001, Canada reintroduced legislation in Parliament, Bill C-6 (An Act to amend the International Boundary Waters Treaty Act), which will prohibit the bulk removal of boundary waters out of their water basins, including the Great Lakes.

With regard to bulk water removals out of the Great Lakes Basin, the
prohibition contained in Bill C-6 fulfills Canada's obligation to the United
States under the Treaty, i.e. not to affect the level and flow of waters on
the U.S. side of the boundary. The prohibition is also a non-discriminatory environmental measure of general application aimed at preserving the integrity of ecosystems within water basins.

Canada's approach of prohibiting the bulk removal of water out of water
basins, which is embodied in Bill C-6, is comprehensive, environmentally
sound and respects constitutional responsibilities. Moreover, it is
consistent with Canada's international trade obligations as it does not
target the export of water as a good, but rather protects water in its water
basin, before the issue of its export arises and before it has become a good or a saleable commodity.

Conclusion

As the foregoing comments indicate, Canada continues to have serious
concerns with certain aspects of Annex 2001, in particular that the proposed standard in the Annex is too permissive with regard to removals of water out of the Great Lakes Basin, and about the relationship of the Annex to the Boundary Waters Treaty. Canada looks forward to an ongoing dialogue with the Council on these matters

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