NAFTA Chapter 11 and the Harmonization of Domestic Practices

  • Susan L. Karamanian


Chapter 11 of the North American Free Trade Agreement (NAFTA),1 which authorizes arbitral tribunals to resolve investor-state disputes arising under the NAFTA,2 is shaping international investment law. It has the potential to influence, as well, the conduct of key state actors within the United States, Canada, and Mexico. Chapter 11 arbitral tribunals enforce the NAFTA state parties’ promise to protect certain foreign investment and, in some cases, the investors.3 Tribunal awards have helped establish the contours of the substantive investment obligations.4 In assessing domestic conduct and practices, the awards have also struck at matters essential to each NAFTA state’s sovereignty. For example, the decisions of courts and government agencies of the NAFTA states, whether at the local or federal level, have been and continue to remain the subject of tribunal review in hotly contested matters.5


Supra Note Minimum Standard North American Free Trade Agreement Arbitral Tribunal Investment Treaty 
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Copyright information

© James T. McHugh 2012

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  • Susan L. Karamanian

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