Sunday, October 28, 2018

New Trade Pact Leaves Most U.S. Industry at Mercy of Mexico's Courts

Thanks, Trump.

The new North American trade agreement ends key legal protections for many U.S. businesses operating in Mexico, leaving their operations exposed to a risk they had avoided under the old trade deal: Mexico’s court system, reports Reuters

For thousands of U.S. firms, the change could add complications and uncertainty to doing business south of the border, according to Reuters.

The previous trade agreement, NAFTA, included provisions that gave U.S. firms operating in Mexico and Canada the option to challenge government decisions at an international tribunal.

A change in Mexican or Canadian regulations, for example, that had a material impact on a U.S. firm’s operations, could be challenged through an international panel instead of local courts.

The removal of the investment protection means firms would now be at the mercy of Mexico’s courts, which are notorious for corruption, notes Reuters.

Taking away legal options in a world of government courts is always a bad idea.



  1. You profit by the foreign country labor market, you die by the foreign country legal system.

    Seems fair to me. I am tired of the corp getting breaks when they screw everyone at every turn.

  2. Not good, but RW, do you and my critics don't believe that all cultures are equal? You are and other lollibertarians are the ones you want to cross the border whenever they want, right? Is there not the possibility that if you bring in a bunch of dirt world people they will not bring their cultural proclivities with them? Thanks for reinforcing my view that open borders is stupidity.

    1. I realize the point I'm trying to make is over your head Evan.

    2. TLM is saying that if you invest in some country with an unreliable government you should take the risk of that unreliable government.

  3. Why is this bad? An international tribunal by definition is a globalist sovereignty-destroying institution. Plus it externalizes costs. Any organization that chooses to do Mexico should understand all the possible consequences of doing so. It's not solely beneficial (ie cheap labor). There are potentially severe consequences too (corruption).

  4. Orange man bad! Orange man bad! Is this or

  5. I thought libertarians were about reducing sovereignty to the most local level possible, that of the individual. Moving something away from what would be anything from a very local level or at worst national level to an international panel is moving in the other direction.

    It is the David Rockefeller style globalists that want these international panels and such not only because it is good for their business interests but it moves the world away from individual sovereignty and towards global governance.

  6. Trump has revealed the vast majority of professional libertarians as nothing more than cheerleaders for the neoliberal status quo.