Aug. 18, 2017
Canada has often turned to Chapter 19 to resolve disputes with the U.S. under the North American Free Trade Agreement (NAFTA) – particularly those related to softwood lumber and what it considers unfair duties imposed by the U.S. According to an article by business writer Drew Hasselback in the Financial Post, that’s likely why removing Chapter 19 from NAFTA would be a deal breaker for Canada in the renewal talks with the U.S. and Mexico. To explain the importance of Chapter 19, the author consults Riyaz Dattu, Osler partner and international trade and investment law expert.
According to Riyaz, “Chapter 19 reviews are respected because they come from panelists who are experts in the area, rather than generalist judges. The panels decide cases based on domestic law, and often produce unanimous rulings that show no sign of domestic bias or overreach of jurisdiction.”
As he explains, “There’s no evidence that the Chapter 19 system has resulted in decisions that are biased against the United States.”
However, the article continues, there’s a chance that the dispute resolution mechanism available under Chapter 19 may actually be unconstitutional in the U.S. The role of Chapter 19 as a deal breaker in the NAFTA renegotiation talks will likely continue to evolve over the months ahead.
To learn more about Chapter 19 and the NAFTA renegotiations, read Drew Hasselback’s full article “Chapter 19 may be NAFTA deal breaker for Canada, but can it survive a legal challenge in the U.S.?” in the August 16, 2017 edition of the Financial Post.