Integration through NAFTA’s chapter 11: Eroding federalism and regionalism?

Abstract

When talking about and analyzing exogenous impacts on the North American Free Trade Agreement (NAFTA), one issue bound to hit the forefront of discussions stems from the controversial Chapter 11: the erosion of federalism as perceived by critics owing to the chapter’s provisions. Chapter 11, entitled “Investment,” establishes a series of rights that seeks to protect foreign investors and their investments, with the goal of promoting increased investment flows and economic integration among the three constituent countries of North America, and, therefore, their overall well-being, With federalism and regionalism at stake, the theoretical question that arises is whether the winning dynamic is state-centric (power to the state) or multi-centric (power to numerous forces, both institutionalized and independent).