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CU/CFA letter on NAFTA proposal to restrict use of Investor-State Dispute Resolution procedure

SUMMARY: Consumers Union and Consumer Federation of America write in support of proposals to significantly curtail the availability of Investor-State Dispute Settlement (ISDS) as part of the renegotiation of the North American Free Trade Agreement. Doing so would address concerns that trade agreements could undermine important consumer protections and other fundamental interests of the broader American public. Among the foremost concerns is the ability of foreign corporations to employ the ISDS procedure to bypass established U.S. laws, regulatory agencies, and courts, to demand compensation from our government in private arbitration tribunals, based on claims that enforcement of U.S. law is reducing foreign corporate profits.