Investments. The Trump administration would support the removal of the controversial Investor-State Dispute Settlement Mechanism (ISDR) in the investment chapter of the agreement. NAFTA was the first U.S. free trade agreement to consolidate an investment chapter, modelled on U.S. BILATERAL INVESTMENT agreements. ISDS is a form of binding conciliation that allows private investors to assert rights against sovereign nations for alleged violations of investment rules in trade agreements. The United States has reportedly proposed to make ISDS an opt-in-opt-out system, with each party deciding whether the cases are accepted by the other. The United States has also proposed limiting eligibility to applications for direct expropriation. The complainants were unable to apply for arbitration for indirect expropriation – the adoption of laws or regulations that affect the value of the investment.
Despite these changes, Special Report 301 2018 has made Canada a “priority list,” with the USTR saying it is a “failure to address long-standing gaps in the protection and application of intellectual property.” According to the USTR, the policy of concern belongs to the foreign and defence policy of Canada generally in line with those of the United States, disagreements arise from time to time. Since taking office in November 2015, the Government of the Liberal Party of Canada, Prime Minister Justin Trudeau, has prioritized multilateral efforts to renew and strengthen the rules-based international order. She expressed disappointment at President Donald Trump`s decision to withdraw from international agreements such as the Paris climate change agreement and questioned whether the United States was abandoning its role as a global leader. These concerns were exacerbated by the disappointment of the G7 summit in Charlevoix, Quebec, in June 2018. The United States and Canada have long been committed to cooperation in the Western Hemisphere for democracy, the rule of law, human rights, economic growth and opportunity, free trade, humanitarian aid and sustainable development. We work closely together in areas such as drug control, conflict resolution, defence cooperation and institutional reforms. Our mutual support for the peace process and demining efforts in Colombia, the democratic transition and rule of law in Haiti, and the upcoming efforts against Zika are our strong commitment to our neighbours in the Western Hemisphere.