Andrew Finn, Coordinator of S&C’s International Arbitration and Global Dispute Resolution Practice, spoke to Law360 about potential claims under the North American Free Trade Agreement (NAFTA). The sunset period for claims under NAFTA will expire this year as the pact was replaced in July 2020 by the U.S.-Mexico-Canada Agreement (USMCA), which may limit the ability of investors in both the United States and Mexico to bring claims against the Mexican and U.S. governments.
The USMCA “basically creates a lot of hoops that were not there before that investors will have to pass through,” Andrew said. “Many investors may find themselves excluded from any meaningful protection, and any real right to go to arbitration under USMCA.”
With the sunset period for NAFTA claims due to expire in July 2023, investors must bring any potential claims under NAFTA before then. “It’s important to assess now whether you might have a claim under NAFTA, and whether it is in specific circumstances appropriate to pursue that now,” he said.
Read “6 International Arbitration Cases To Watch In 2023.”