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Dalhousie Journal of Legal Studies

Authors

Angela Cousins

Abstract

Chapter 11 of NAFTA grants substantive and procedural rights to investors of a NAFTA country who invest in another NAFTA jurisdiction. It allows citizens of Canada, the US and Mexico, who invest in another NAFTA country, the right to obtain damages for government measures in violation of the provisions of Chapter 11. The provisions of Chapter 11 have been the subject of both criticism and acclaim. Chapter 11 has been hailed as the hero of commercial investment efficiency, and as a villain seeking to maximize private business interests at the expense of national public interest. Chapter 11 is aimed at providing stability and reducing uncertainty with respect to decisions on whether to invest in the countries of NAFTA. Because there is no appellate tribunal designated within Chapter 11, arbitral decisions are subject to judicial review by domestic courts only in limited circumstances. However, the standard of review which the domestic courts of Canada, the United States and Mexico must apply to Chapter 11 arbitration cases is uncertain. The recent decision of the Federal Court in Canada (A.G.) v. S.D. Meyers, Inc. is an important case because it indicates the standard of review which Canadian courts will apply to the decisions of Chapter 11 arbitral tribunals. In addition, the case is the first time that a Chapter 11 arbitration award was heard before the losing party’s own judiciary.

Creative Commons License

Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License
This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 3.0 License.

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