Mexico and Canada rejected a proposal made by the United States to change a corporate arbitration system included in the North American Free Trade Agreement (NAFTA), the Wall Street Journal reported citing people involved in negotiations. Currently, the so-called investor-state dispute settlement stipulates that arbitration panels decide on complaints from corporations claiming they were treated unfairly by a NAFTA member.
The changes proposed by the US trade officials would let it withdraw from the arbitration system. If approved, American companies would keep their right to arbitration, but Canadian and Mexican companies would not be able to use the system against Washington. According to the report, the two countries would prefer to form their own bilateral system in which the US government would not be subjected to arbitration, but its companies would not enjoy protection in dealing with the other members.
