NAFTA Update

This week the NAFTA parties are participating in intersessional discussions ahead of the 7^th round of negotiations in Mexico City on February 25-March 3. Ahead of this round there is anticipation that Canada may submit a proposal to fully eliminate the investor-state dispute settlement (ISDS) provision part of a larger bargain in the negotiations, opening the door for possible U.S. concessions on Canadian and Mexican priority areas. This proposal, as part of a “conceptual proposal of possible landing zones,” is part of a series of efforts by the Canadian chief negotiators to construct possible compromise areas that would allow flexibility when renegotiating the broader investment protections in the chapter.