The New NAFTA: Scaled-Back Arbitration in the USMCA - Journal of International Arbitration View The New NAFTA: Scaled-Back Arbitration in the USMCA by - Journal of International Arbitration The New NAFTA: Scaled-Back Arbitration in the USMCA 36 6
In
December 2018, the United States,
Mexico, and Canada
entered into the United States- Mexico-Canada Agreement (USMCA), a new
multilateral investment agreement to replace the 1994 North America Free Trade
Agreement (NAFTA). This article summarizes the differences between the
investor-state dispute settlement (ISDS) provisions provided in Chapter 11 of NAFTA
and those covered in Chapter 14 of the USMCA from the perspective of the United States, Mexico and Canada. This article covers when an
investor can assert claims under the USMCA (including NAFTA claims for legacy
investments), what kind of claims can be brought, and what rules govern in
USMCA arbitrations. The authors of this article conclude that the USMCA
provides diluted ISDS provisions compared to NAFTA’s Chapter 11.
Journal of International Arbitration