In 1927, a smelter in Trail was polluting, via smoke deposition, farmlands south of the border in the United States.
 The US initially agreed to bring the issue before the International Joint Commission.
 A 1931 report the IJC recommended Canada compensate the United States for a sum of $350,000 to the farmers, the US rejected the offer.
 In 1935 the two countries agreed to arbitration, in which Canada again offered to compensate the US $350,000 for all damages caused before 1932.
 In April 1938, after extensive expert assessments, the tribunal acknowledged that the smelter had caused damage after 1932.
 Then in 1941, it held that "no State has the right to use or permit the use of its territory in such a manner as to cause injury by fumes in or to the territory of another or the properties or persons therein, when the case is of serious consequence and the injury is establish by clear and convincing evidence."
  This case, known commonly as the "Trail smelter arbitration", is a landmark in environmental law, as it helped to establish the "polluter pays" principle for transnational pollution issues.
In 1927, a smelter in Trail was polluting, via smoke deposition, farmlands south of the border in the United States.  The US initially agreed to bring the issue before the International Joint Commission.  A 1931 report the IJC recommended Canada compensate the United States for a sum of $350,000 to the farmers, the US rejected the offer.  In 1935 the two countries agreed to arbitration, in which Canada again offered to compensate the US $350,000 for all damages caused before 1932.  In April 1938, after extensive expert assessments, the tribunal acknowledged that the smelter had caused damage after 1932.  Then in 1941, it held that "no State has the right to use or permit the use of its territory in such a manner as to cause injury by fumes in or to the territory of another or the properties or persons therein, when the case is of serious consequence and the injury is establish by clear and convincing evidence."   This case, known commonly as the "Trail smelter arbitration", is a landmark in environmental law, as it helped to establish the "polluter pays" principle for transnational pollution issues.
Trail, British Columbia