Why the FTC Notes of Interpretation Constitute a Partial Amendment of NAFTA Article 1105
![handle is hein.journals/vajint46 and id is 357 raw text is: Why the FTC Notes of Interpretation
Constitute a Partial Amendment of NAFTA
Article 1105
CHARLES H. BROWER, II*
I. Introduction ............................................................................... 347
II. The Minimum Standard: Text, Ambiguities, and Early Cases..349
III. The Notes of Interpretation: Content and Controversy ............. 353
IV. Exclusion of Free-Standing Treaty Obligations: A
Reasonable Interpretation .......................................................... 356
V. Exclusion of General Principles of Law: Unlawful and
Ineffective Am endm ent ............................................................. 358
V I. C onclusion ................................................................................. 363
1. INTRODUCTION
Nearly five years ago, the Free Trade Commission (FTC) created by
the North American Free Trade Agreement (NAFTA) issued Notes of
Interpretation (Notes) purporting to restrict the minimum standard of
treatment under NAFTA's investment chapter (Chapter 11) to the
requirements of customary international law.2 A controversy ensued
regarding the Notes' status as a reasonable interpretation falling within,3
* Croft Associate Professor of International Law and Jessie D. Puckett, Jr. Lecturer,
University of Mississippi School of Law. The author gratefully acknowledges financial support
provided by Dean Samuel M. Davis and the University of Mississippi School of Law, as well as
access to the library at the George Washington Law School arranged by Associate Dean Susan L.
Karamanian. A version of this Article previously was circulated in the newsletter of the
Committee on Commercial Dispute Resolution of the ABA's Section of International Law and
Practice.
1. North American Free Trade Agreement, Dec. 17, 1992, Can.-Mex.-U.S., art. 2001, 107
Stat. 2066, 32 I.L.M. 605, 693 [hereinafter NAFTA] (establishing a Free Trade Commission that
consists of cabinet-level representatives of the three NAFTA Parties).
2. NAFTA FTC, Notes of Interpretation of Certain Chapter 11 Provisions, § B (July 31,
2001), available at http://www.dfait-maeci.gc.ca/tna-nac/NAFTA-lnterpr-en.asp [hereinafter
Notes].
3. See Loewen Group, Inc. v. United States, Award 125-26, ICSID Case No.](ViewImageLocal?handle=hein.journals/vajint46&div=18&collection=&method=preview&ext=.png&size=3)
What Is HeinOnline?
Contact us for annual subscription options:
Already a HeinOnline Subscriber?
profiles profiles most
Why the FTC Notes of Interpretation Constitute a Partial Amendment of NAFTA Article 1105
Contact us for annual subscription options:
Already a HeinOnline Subscriber?
profiles profiles most