Eliminating USMCA Chapter 10 (Formerly NAFTA Chapter 19)

Chapter 10 of the United States-Mexico-Canada Agreement (USMCA) is a special dispute settlement process originally established by the North American Free Trade Agreement (NAFTA) under Chapter 19. USMCA allows Canada and Mexico to avoid the U.S. judicial system and instead use international tribunals to force the U.S. government to reverse actions it has taken against unfair trade.

In negotiating the USMCA, Canada insisted on preserving these provisions and has used NAFTA Chapter 19/USMCA Chapter 10 in the past to challenge U.S. trade measures on softwood lumber.

Chapter 10/19 applies when a USMCA country uses its fair-trade laws against another country’s imports. If one country is selling or “dumping” its exports below cost, or subsidizing production, it can challenge and reverse actions taken to stop the unfair trade using this special dispute settlement panel process.

USMCA Chapter 10/NAFTA Chapter 19 is unique.  Nothing like it has been included in any other U.S. trade agreement.

USMCA Chapter 10/NAFTA Chapter 19 is unconstitutional. It gives powers to international tribunals that the Constitution reserves for U.S. courts.  Foreign panel members are appointed outside of constitutional oversight or democratic accountability.

Under USMCA Chapter 10/NAFTA Chapter 19, unfair trade has been accepted rather than disciplined, robbing U.S. industries of a fair chance to compete and costing U.S. workers their jobs.  These biased rulings are based on a flawed interpretation of U.S. law, and force U.S. producers and workers to compete against unrestrained, subsidized and unfairly traded foreign imports. This system must be eliminated from the USMCA.