The August Review

Is a chapter in the North American Free Trade Agreement (NAFTA) that deals with foreign direct investment. This chapter has become very controversial because of a provision that established a member country system of private arbitration for foreign investors to bring injury claims against governments. These so called "investor-state" cases are litigated in special international arbitration bodies, which are closed to public participation, observation and input. Written to protect foreign investors from governments seizing their property, corporations have stretched NAFTA's Chapter 11 to undermine government decisions made to protect public health, the environment and local communities. [This should not be confused with Chapter 11 of the US bankruptcy code.]