5. North American Free Trade Agreement (NAFTA) Disputes

Abstract

In 2010, an important case with environmental health elements was arbitrated under NAFTA Chapter 11. Other cases concerning environmental regulations are still pending and will be examined after their decision (for an early account, see NAFTA’s yearly report in last year’s volume). This review shall examine Chemtura Corporation v Canada and briefly mention other pending cases that have presented interesting developments in 2010. The Chemtura case concerned the question of whether the government of Canada should pay compensation to a United States agricultural pesticide manufacturer for its ban of an agro-chemical called lindane. Since Canada’s Pest Management Regulatory Agency (PMRA) banned lindane on the basis of the chemical’s health and environmental effects, Chemtura—formerly known as Crompton—initiated arbitral proceedings at the Permanent Court of Arbitration under the UN Commission on International Trade Law (UNCITRAL), requesting by way of restitution, the reinstatement of all registrations relating to...