Preserving NAFTA Legacy Rights Requires Immediate Action

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Investors from the United States, Mexico or Canada in the territory of one of the other two investment hosting states, who may have been adversely affected by the host government’s measures, need to act by the end of March 2023 to preserve NAFTA rights. If the investment was made between January 1, 1994 and July 1, 2020, and qualifies under the 1994 North American Free Trade Agreement (NAFTA), an investor can avail itself of the right to arbitration of so-called “legacy claims”. However, the sunset provision in NAFTA’s successor treaty found in Annex 14-C of the United States-Mexico-Canada Agreement (USMCA) is about to expire.