Introduction

Most of you know about NAFTA Chapter 11, which provides investment guarantees that relate to non discrimination, fair treatment and compensation for expropriated property. NAFTA also provides a right of arbitration for the investor in the event of disputes with the host state. When NAFTA came into force ten years ago, few people could have imagined the resulting hysteria in the United States. Before NAFTA, the United States saw investment arbitration principally as a tool whereby Americans could avoid Mexican courts in favour of arbitrators. Then the tables were ...