What rights do companies actually have under the NAFTA Chapter 11?
NAFTA Chapter 11 obligations to the other two countries which are signatories of the Agreement include non-discriminatory treatment of their investors and their investments, compensation for expropriation, and transfer provisions that explicitly permit the transfer of profits, dividends and the proceeds when liquidating an investment. Canada’s exemptions from Chapter 11 obligations include foreign ownership restrictions on sensitive sectors in the Canadian economy, such as transportation, telecommunications, social services and cultural industries. Chapter 11 protects NAFTA investors by prohibiting any expropriation or nationalization of their investment except for a public purpose, on a non-discriminatory basis, and in accordance with due process of law. It’s important to note that Chapter 11 does not allow companies to sue successfully simply for diminished profits. For example: • A municipal government has the right to prohibit the establishment of a chemical plant within it’s city
