ABSTRACT
This chapter examines the investor-state dispute settlement mechanisms of the Mercado Comun del Cono Sur (MERCOSUR) and North American Free Trade Agreement (NAFTA) systems. It provides brief, cursory histories of the creation and aspirations of MERCOSUR and NAFTA. The chapter discusses and analyzes the treaty provisions relevant to investor-state dispute resolutions under the regimes. Overall, however, NAFTA has rapidly evolved into probably the most overwhelmingly successful regional arrangement. For MERCOSUR and its investor-state system, the situation is dramatically different. Recent economic and political problems in the leaders of MERCOSUR, Argentina and Brazil, will only exacerbate the situation. MERCOSUR was created to promote trade harmonization. The overall MERCOSUR system has been designed to reflect its objective of "economic integration thorough political cooperation rather than institutionalism". Finally, the chapter concludes with the author's central argument that from the treaty provisions of MERCOSUR and NAFTA, while both imperfect, the latter promotes a paradigm the former should attempt to emulate.
