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Article: NAFTA Chapter eleven and the implications for the FTAA: the institutionalization of investor status in public international law.(North America Free Trade Agreement)(Free Trade Area of the Americas)
- Article from:
- Transnational Corporations
- Article date:
- August 1, 2005
- Author:
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Two issues have emerged from the innovation spurred by the investment chapter (Chapter 11) of NAFTA which provides for the settlement of investor-State disputes outside of the State's domestic courts. First, it represents the recognition that the legal standing of the natural and/or corporate legal person, when acting in the economic capacity of investor, is equal in international law to that of the State. Second, the inclusion of a private party-State alternative dispute resolution mechanism in an intergovernmental treaty is contradictory to the voluntary commitment by parties to such an agreement underlying this method, known as "privity of contract". These innovations ...