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FTAA and Investment

NAFTA's groundbreaking investment chapter, known as Chapter 11, granted expansive new rights and privileges for foreign investors operating in the three NAFTA signatory nations. These same investment provisions are at the core of the proposed FTAA. 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 enforce their new rights via special tribunals where private investors and corporations directly sue governments for cash compensation! The sovereignty and public policy implications of the NAFTA Chapter 11 investor-to-state cases argue against the extension of NAFTA to the rest of the Western Hemisphere. Many have noted that NAFTA was more of an investment agreement than a trade agreement — the FTAA would expand NAFTA's investment rules to the rest of the Americas. A quick survey of the consequences of those rules on any number of environmental, labor, economic justice, food safety, public health and democratic,accountable governance shows that the expansion of these rules would be disastrous.

Read Public Citizen's Report on the Implications of NAFTA Chapter 11 Investor-to-State Cases

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