What is NAFTA Chapter 11?
Chapter 11 is the investment component of the North American Free Trade Agreement. It establishes a framework of rules and disciplines that provides investors from the NAFTA countries with a predictable rules-based investment climate, as well as dispute settlement procedures which are designed to provide timely recourse to an impartial tribunal. The dispute settlement mechanism of Chapter 11 is intended to address alleged violations of the NAFTA. There have been only 4 arbitration cases involving Canada since the Agreement came into force in 1994. This number is small compared to the hundreds of billions of dollars of foreign investment that Canada has attracted from our NAFTA partners and the number of laws and regulations enacted by every level of government in Canada, the U.S. and Mexico over the past 8 years. Chapter 11 does not restrict the normal activities of municipal governments. However, it is important that municipalities are aware of these rules. The obligations on investme
Related Questions
- What does the recent NAFTA Chapter 11 Metalclad v. Mexico decision mean to municipalitys ability to implement zoning by-laws?
- How will NAFTA Chapter 11 affect municipalities ability to use public-private partnerships for government procurement?
- Should municipalities worry about becoming the target of a NAFTA Chapter 11 foreign investor claim?
