GLOBALIZATION AND TRADE

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Investment Rules and the Environment

The MAI includes provisions similar to NAFTA's groundbreaking investment chapter, known as Chapter 11, which granted expansive new rights and privileges for foreign investors operating in the three NAFTA signatory nations. To date, corporate investors in all three countries have used these new rights to challenge national, state and local environmental and public health policies, domestic judicial decisions, a federal procurement law and even a government's provision of parcel delivery services as NAFTA violations. Remarkably, NAFTA also provides the mechanism for foreign investors to privately enfore their new rights via special tribunals where private investors and coporations directly sue governments for cash compensation!

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