Common Contracts
1 similar Divergent Fair And contracts
DIVERGENT FAIR AND EQUITABLE TREATMENT STANDARDS UNDER NAFTA AND THE USMCADivergent Fair And • May 8th, 2023
The United States-Mexico-Canada Agreement (“USMCA”) entered into force on July 1, 2020,1 and replaced the North American Free Trade Agreement (“NAFTA”).2 The USMCA’s investment protection provisions for foreign investors diverge from NAFTA in certain respects. Notably, investors are subject to some restrictions in bringing investor-state dispute settlement (“ISDS”) claims under the USMCA because Canada has not consented to the ISDS mechanism. Further, before initiating arbitration, investors under the USMCA are obligated to pursue legal action against the host state’s measures before the local courts and obtain a final judgment or demonstrate that they could not after 30 months of local proceedings.3
