The North American Free Trade Agreement (NAFTA) came to an end on 1 July 2020. After 24 years, it has been replaced by a new agreement called the Canada-United States-Mexico Agreement. The main impact as far as the energy sector is concerned was elimination of the famous Chapter 11 dispute resolution provision. Chapter 11 of NAFTA gave private investors the right to bring claims directly and unilaterally in the host country. This was unique at the time when the arbitration world was dominated by state-to-state proceeding.
Read moreForeign investors harmed by trade measures may find relief by bringing investment arbitration claims →
A recent investor-state arbitration decision under the investment chapter of the North American Free Trade Agreement (NAFTA Chapter 11), Vento v. Mexico, demonstrates that foreign investors protected by an international investment agreement may submit arbitration claims that international trade regulatory and tariff measures breach the state's international obligations.
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