Eliminating NAFTA Chapter 19
Chapter 19 is a special dispute settlement process established by the North American Free Trade Agreement (NAFTA). It 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.
Chapter 19 applies when a NAFTA 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 a special “NAFTA Chapter 19” panel process.
NAFTA Chapter 19 is unique. Nothing like it has been included in any other U.S. trade agreement and it was a mistake to include it in NAFTA.
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 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. The Chapter 19 system must be eliminated from NAFTA.