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How did NAFTA settle disputes between investors and member countries?
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North American Free Trade Agreement
(From left) Mexican Pres. Carlos Salinas de Gortari, U.S. Pres. George H.W. Bush, and Canadian Prime Minister Brian Mulroney meeting to initial the North American Free Trade Agreement in San Antonio, Texas, October 7, 1992.
The North American Free Trade Agreement (NAFTA) established formal rules to resolve disputes between investors and member countries. These provisions allowed individual investors or corporations to sue a signatory country for compensation if that nation violated the rules of the treaty.1