Thread by @snlester

The NAFTA Chapter 19 issue is often described something like this:

"One of the sticking points that is getting the most attention so far is Canada's demand to keep an independent dispute resolution system within the trade pact."

"The Canadians are demanding that the dispute resolution mechanism Chapter 19, or a version of it, be kept in NAFTA. The Americans want the system scrapped in favour of using U.S. courts to resolve trade disputes."

Here's the link for that quote: cbc.ca/news/politics/…

In my view, a better way to explain these issues would be the following:

Many Canadians believe that U.S. anti-dumping/countervailing duties are used improperly against Canadian products. Canada is concerned that U.S. courts cannot adequately discipline the U.S. agencies who investigate anti-dumping and subsidies and impose the duties.

Canada wants to keep Chapter 19 as an additional mechanism, beyond the appeals mechanism provided by U.S. courts, to review these agency decisions. By contrast, the U.S. believes that U.S. courts are sufficient for this purpose.

Separately, NAFTA Chapter 20 provides a mechanism to resolve disputes over the interpretation and application of the NAFTA itself.

Chapter 20 has not worked well in recent years (papers.ssrn.com/sol3/papers.cf…), and the parties are likely talking about it in the context of this negotiation, although there has not been much public discussion of the details. /end