Does Newfoundland and Labrador have jurisdiction over its water resources?
Yes. The province has jurisdiction over its water resources. Natural resources, including fresh water, fall within provincial jurisdiction. Consequently, any decision to sell and export bulk water is a matter for each province to decide under its legislation. Would approval of a bulk water project in Newfoundland and Labrador render all water resources in Canada a “good” under NAFTA? No. Two Canadian legal opinions solicited by the province indicate that while approval of a bulk water project in Newfoundland and Labrador would create trade consequences for this province, it would not render all water resources in Canada a “good” under NAFTA and, therefore, would not create a precedent for the other provinces. In other words, other provinces would not be required to harmonize their best practices with those of Newfoundland and Labrador. Would approval of a bulk water project negatively impact the environment? May or may not. The Ministerial Committee decided that it depends on the circu