What Does NAFTA 2.0 Mean for Investor-State Dispute Settlement?
By Public Citizen's Global Trade Watch
The proposed new NAFTA 2.0 Investment Chapter eliminates Chapter 11-B, NAFTA’s Investor-State Dispute Settlement (ISDS) regime, under which hundreds of millions have been awarded to corporations that attacked domestic laws and actions before tribunals of three corporate lawyers.
ISDS between the U.S. and Canada is terminated. This would eliminate 92 percent of U.S. ISDS liability under NAFTA and much of the total, overall U.S. ISDS exposure. A scandalous aspect of NAFTA ISDS is that, despite the United States and Canada having reliable court systems, all but three of 61 ISDS cases against the two nations were instigated by the other’s investors.