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Detailed Analysis of Methanex v. United States

The Methanex case is relevant to U.S. states and localities because it illustrates how NAFTA’s investment chapter allowed a transnational corporation to bring a complaint against a state law for performing a core governmental function, protecting the public health and environment from a clear and well-documented threat.A decision by an international tribunal to award damages to the Methanex corporation would have been politically explosive, validating allegations that no environmental or public health measure is safe from challenge under NAFTA’s investment chapter. The attached Forum Analysis examines the case in detail. 

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