USCIB’s Vice President for Investment and Financial Services Shaun Donnelly along with its Director for Investment, Trade and Financial Services Eva Hampl recently contributed an op-ed in The Hill titled, “NAFTA 2.0 needs to enshrine investor protections.”
As the Trump administration gears up to update the North American Free Trade Agreement (NAFTA) later this month, Hampl and Donnelly evaluate the Trump administration’s negotiating objectives, which were released last month.
“Overall, the administration’s “NAFTA 2.0” wish-list is solid. Some commentators have noted the irony of including so many goals that were essentially attained in the Trans-Pacific Partnership, an agreement President Trump withdrew from on his third day in office,” they write. However, one of the more crucial objectives, mainly investor protection under the agreement’s Chapter 11 are not included.
“These provisions, which allow U.S. investors both small and large to seek compensation for unfair, discriminatory or inequitable treatment at the hands of foreign governments, are based on bedrock principles embedded in our own Constitution prohibiting abusive government treatment and the taking of private property without just compensation. Without this provision, domestic courts become the only legal recourse for a wronged investor. While Mexico has made great strides in many respects, its court system is still far from impartial. Indeed, miscarriages of justice can happen in any country, including advanced democracies like the United States and Canada,” they noted.
Please visit The Hill for the whole op-ed.