Apotex Inc. v. United States: Award on Jurisdiction and Admissibility (NAFTA Arb.)
The North American Free Trade Agreement between Canada, Mexico, and the United States (NAFTA) entered into force on January 1, 1994. Chapter Eleven of NAFTA contains provisions governing investment protection and investor-state arbitration. In general, NAFTA provides investors of one of the parties protections for their investments in another NAFTA party, guaranteeing: treatment at least as good as that of host or third country investors (NAFTA articles 1102-1104); treatment in accordance with the minimum standards of customary international law (NAFTA article 1105); and compensation for expropriation (NAFTA article 1110). NAFTA article 1139 defines “investment” broadly but excludes contracts for the sale of goods or services. After meeting specified threshold requirements, such an investor has the right to international arbitration against the host state to vindicate these protections.