NAFTA Dispute Settlement: Success or Failure?

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Co-authored with Professor Donald McRae. This article addresses whether NAFTA's dispute settlement provisions have worked effectively over the last 15 years. The focus of the article is primarily on the dipsute settlement processes under Chapters 19 and 20, however consideration of Chapter 11 is included. The origin of the provisions are examined as well as how they were affected by the advent of WTO dispute settlement. Consideration is also given to the problems that have arisen and how many of them have remained unresolved. Nonetheless, NAFTA dipsute settlement has been active and successful in dealing with particular kinds of disputes in the NAFTA area. The article concludes with some reflections about dipsute settlement provisions in regional trade agreements and the emerging conflicts between regional and multilateral trading systems in respect to dispute settlement.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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