In NAFTA Art. 1114(2) the Parties agreed not to encourage investment by relaxing health, safety or environmental measures. Nonetheless, in recent years Canada weakened the Canadian Environmental Assessment Act, the Fisheries Act, and other laws in order to promote investment in tar sands development and other resource extraction. NAFTA Art. 1114(2) lets the US seek consultations with Canada in order to resolve these violations. Unless the US rigorously objects to Canada's infringement of Chapter 11, the US will seriously undermine the legitimacy of NAFTA and the many trade deals since that include similar language. NAFTA was supposedly the most environmental trade deal ever, and this provision to prevent a race to the bottom was key. The US must enforce it for NAFTA to stay credible.



