Canada, Mexico tell U.S. on NAFTA investor-state protection: Get in, or get out
MONTREAL — Canada and Mexico are applying pressure on the United States to decide whether it wants to be part of NAFTA’s investor-state dispute mechanism, threatening to sideline it unless it commits to participating fully.
Multiple sources say the conversation came to a head this week over how to settle disagreements between states and corporations, with the two countries refusing to let the U.S. rewrite the rules for Chapter 11 if it can’t commit to being part of it.
The Trump administration wants the right to opt out of Chapter 11’s binding dispute resolution panels, because it views them as an invasion of sovereignty and an incentive for companies to outsource to Mexico by guaranteeing them a forum to sue for unfair treatment.
“We basically said to them, ‘If you want to opt out, that’s fine — you’re gone,’” said an official with knowledge of the talks who described the American reaction.