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Why Should We Keep Chapter 19 of the NAFTA?

27 Sep , 2018  

A group of Trade Law Experts from the Mexican Trade Law Bar, including our partner Adrian Vázquezissued the following statement about: Why Should We Keep Chapter 19 of the NAFTA?

But first….

 

  1. The panel review mechanism in antidumping and countervailing duties matters contained in Chapter 19 of the NAFTA gives legal certainty and security to foreign trade operations in North America; to allow its elimination would be a serious mistake.
  2. The Chapter 19 panel review mechanism is not of exclusive interest to Canada, rather it is of regional and tripartite interest: the mechanism benefits the importers and exporters of the three nations and gives legal certainty to their trade operations.
  3. Chapter 19 should not disappear; it should be modernized to ensure its status as an effective, expedite and solid tool. It has vast experience: 25 years of resolved cases, on a strictly technical and legal basis, with victories and reversals for the three Member States of the Agreement, as in any international trade dispute.
  4. Eliminating Chapter 19 would have a negative impact on the industrial and agricultural users of the North America region who import and export intermediate goods, as they would only have access to local courts that already have an enormous workload.
  5. Abandoning Chapter 19 means surrendering the only international mechanism for the review of antidumping and countervailing duty matters that are within reach of private persons and which does not depend on a government decision for activation. The WTO mechanism is not a substitute for Chapter 19, because it is only initiated at the request of governments and does not depend on the motivation of private persons.
  6. Although the WTO mechanism can be activated by States, the fact is that this is also at serious risk. The United States is leaving Mexico and Canada without any recourse for solving differences.
  7. Chapter 19 represents part of the identity of the NAFTA, which together with other chapters, such as Chapter 18, make sense of and provide congruency to the economic integration project that is a reality in North America in the 21st.

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