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United States-Mexico-Canada Agreement: Fragmentation and Curtailment of Investor State Dispute Settlement
David Earnest, Shearman & Sterling LLP
12 December 2018
The Trump administration took a step towards clarifying its position on investor state dispute settlement (ISDS) when, on 30 November 2018, the United States, Mexico, and Canada entered into the United States–Mexico–Canada Agreement (USMCA). The USMCA departs significantly from the North American Free Trade Agreement (NAFTA) by curtailing investor’s access to ISDS, narrowing the substantive protections available for investments, and imposing an exhaustion of local remedy requirement as a precondition to ISDS.
Image credit: Flag of the North American Free Trade Agreement by Keepscases (CC BY-SA 3.0) via Wikimedia Commons.
October 26, 2018
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