Bloomberg Law
Dec. 14, 2018, 12:47 PM

New NAFTA Rolls Back Investor Protections for Infrastructure

Rossella Brevetti
Rossella Brevetti

U.S. investors won’t be able to arbitrate disputes over Mexican infrastructure projects such as dams, seaports and airports under language revised after the two countries agreed to a trade deal with Canada in September.

The revised language made public Nov. 30 about what projects are subject to arbitration in the investor-state dispute settlement (ISDS) provision is narrower than the earlier version. The change could make Mexican projects less appealing to U.S. investors, who prefer relying on arbitrators rather than the Mexican legal system.

“It’s a big deal. It significantly narrows the scope of the provision,” a private sector source told ...