Abstract
The North American Free Trade Agreement (NAFTA) investment regime’ created by Chapter 11 is significant for many reasons: it covers two developed and a less developed economy; it includes existing as well as future legislative provisions; and most notably, it provides for investor-state dispute settlement. This chapter addresses the construction and evolution of the NAFTA investment regime — its philosophical and practical underpinnings, provisions, operations, assessment, and the complexities of revision. Although it is often argued that multilateral institutions are preferable to regional ones, regional regimes may provide an opportunity to test and refine cooperation on issues that have yet to be addressed more broadly. This is the case with investment in the North American context since Chapter 11 of NAFTA contains many of the same clauses that were included in the failed Multilateral Agreement on Investment (MAI). Thus NAFTA may be considered a test case for a larger investment accord. Moreover, since the investment provisions of the draft Free Trade Area of the Americas (FTAA) have been influenced by Chapter 11, an evaluation of the functioning of the NAFTA investment regime is directly relevant to what might unfold in the hemisphere.
Eden (1996) first used the term “investment regime.”
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Molot, M.A. (2002). Reducing Barriers to Investment: Is the NAFTA Investment Regime an Appropriate Model?. In: McBride, S., Dobuzinskis, L., Cohen, M.G., Busumtwi-Sam, J. (eds) Global Instability. Social Indicators Research Series, vol 13. Springer, Dordrecht. https://doi.org/10.1007/978-94-010-0251-6_4
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DOI: https://doi.org/10.1007/978-94-010-0251-6_4
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