BackAfter more than 25 years, the North American Free Trade Agreement (“NAFTA”) was replaced by the United States of America, the United States of Mexico, and Canada Agreement (“USMCA”) on July 1, 2020.
This new agreement, as well as the NAFTA, contains a mechanism to enforce the rights of the investors from violations caused by the contracting parties where they made their investment; this mechanism is known as Investor State Dispute Settlement (ISDS). Nevertheless, as provided in its Annex 14-C, investors who made their investments while NAFTA was in place may still be able to submit a claim under that treaty basis for a “Sunset Period” of three years since the USMCA entered into force, i.e., July 1, 2023.
