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Globe says Magna, others hear Chapter 11 revamp sought

2017-09-14 07:04 ET - In the News

See In the News (C-MG) Magna International Inc

The Globe and Mail reports in its Thursday, Sept. 14, edition that Canada is pushing for major changes to a NAFTA provision that governs the adjudication of lawsuits filed by North American businesses against governments for damages to their investments. The Globe's Robert Fife and Steven Chase write that the goal of Foreign Affairs Minister Chrystia Freeland is to revamp Chapter 11 so it more closely mirrors the investor-state dispute-resolution mechanism that forms part of the 2016 Canada-European Union trade deal. Unnamed sources say the United States has not dismissed the Canadian proposal out of hand. Talks are continuing, sources say, and it is not stalemated like other subject areas. Chapter 11 provides for a system where companies from NAFTA member countries can get timely arbitration of lawsuits if they feel their investments have been unfairly damaged by government action. Critics have said the arbitration approach is too vulnerable to conflicts of interest faced by the lawyers asked to sit on adjudicating panels. Ottawa is seeking a system where Canada, the United States and Mexico would establish set lists of judges who would be available to hear investor claims under Chapter 11.

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