Trudeau insists NAFTA must have dispute mechanism despite US demands it be eliminated
OTTAWA — Any renewal of the North American Free Trade Agreement will have to include a fair process to resolve disputes, Prime Minister Justin Trudeau said Tuesday.
In the summary of its objectives in the renegotiation of NAFTA, the White House signalled last week that it wants to entirely eliminate the chapter 19 dispute resolution mechanism.
Rather than relying on the courts to sort out disputes, chapter 19 establishes binational panels to determine the legitimacy of a country’s decision to impose countervailing duties or anti-dumping measures on imports it deems to be unfairly priced or subsidized.
The appeal is heard by panels of experts appointed by the two countries in question, and their decision is generally binding.