January 28, 2018

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 of the agreement if it can't commit to being part of it.

Chapter 11 is the investment component of NAFTA — not to be confused with the bankruptcy filing term. NAFTA's Chapter 11 provides businesses with predictable investment climate and a dispute settlement procedure should issues arise.

Read more:

http://www.cbc.ca/news/politics/nafta-montreal-talks-january-28-1.4507990