CUSMA dispute settlement

The Canada-United States-Mexico Agreement (CUSMA) features three types of dispute settlement mechanisms: a State-to-State dispute settlement procedure to resolve differences in the interpretation and application of the agreement (Chapter 31); a rapid response mechanism to address potential violations of certain labour commitments (Chapter 31, Annex 31-B); and a review mechanism for antidumping and countervailing duty measures (Chapter 10).

These dispute settlement mechanisms are supported by a trilateral Secretariat, comprised of representatives of each of the three CUSMA Parties. The rules of procedure and code of conduct that apply to these mechanisms are available on the Secretariat’s website.

State-to-State dispute settlement (Chapter 31)

The State-to-State dispute settlement mechanism allows Parties to resolve disputes about the interpretation or application of the agreement. Most obligations in the agreement, including those related to labour and the environment, are subject to this mechanism. Chapter 31 encourages Parties to resolve disagreements through cooperative means, such as consultation and mediation, so that formal dispute settlement is used only if the Parties to a dispute fail to resolve it through other means.

You may consult Active and concluded State-to-State dispute settlement cases.

Canada-Mexico Facility-Specific Rapid Response Labour Mechanism (Annex 31-B)

The rapid response mechanism exists to address potential labour violations related to collective bargaining and freedom of association in a timely manner. This enforcement mechanism contemplates the rapid deployment of a three-member panel of labour experts to a facility to ensure that national labour law is being respected.

The Guidelines for Denial of Rights claims under the Canada-Mexico Facility-Specific Rapid Response Labour Mechanism describe the procedures and criteria to be followed by the Canadian National Administrative Office for the submission, acceptance and initial review of claims submitted under the mechanism.

You may consult the Claims submitted on the Employment and Social Development Canada website.

Binational panel review (Chapter 10)

Under this dispute settlement mechanism, a binational panel can review antidumping and countervailing duty measures imposed by CUSMA partners (certain legal documents related to these cases can be viewed on the TAS e-filing system ^Note – registration is required).

You may consult Active and concluded binational panel reviews.

Extraordinary challenge committees (Chapter 10)

The extraordinary challenge procedure provides a means to review a binational panel’s decision under CUSMA Chapter 10. The procedure may be invoked when a Party believes that a member of the panel materially violated the rules of conduct, the panel seriously departed from a fundamental rule of procedure, or the panel manifestly exceeded its powers, authority or jurisdiction, and such actions have materially affected the panel’s decision and threatens the integrity of the binational panel review process.

There are presently no active or concluded final determination reviews.

Special committees (Chapter 10)

The special committee procedure safeguards the binational panel review system. It may be invoked when a Party believes that the application of another Party’s domestic law has prevented the establishment of a panel, prevented a panel from rendering a final decision, prevented the implementation of a panel’s decision, or resulted in a failure to provide for independent review of an investigating authority’s final determination.

There are presently no active or concluded panel safeguard procedures.

Investor-State dispute settlement

The investor-State dispute settlement (ISDS) provisions under Chapter 14 (Investment) do not apply to Canada. To facilitate the transition from the original NAFTA to CUSMA, the Parties have agreed to a transitional period of three years, during which the ISDS mechanism under the original NAFTA will continue to apply only for investments made prior to the entry into force of CUSMA.

You may also consult NAFTA ISDS case summaries.