Alternative Dispute Resolution (ADR) refers to any method of settling a dispute outside of traditional litigation and the courtroom. In the context of NAFTA, it is unfeasible to have ever-expanding international trade without a system for resolving disputes that will inevitably arise out of such trade. ADR is the method of choice for resolving these disputes in business today.
The three NAFTA countries identified ADR as import for the resolution of international commercial contracts and as such, the NAFTA 2022 Committee was established during the NAFTA negotiations to assess the availability and enforcement of private ADR awards within the region. [View NAFTA 2022 CommitteeMandate]
The inclusion of appropriate provisions in international commercial contracts that address the resolution of private commercial disputes is an important first
step in support of that objective. There are many matters to take into consideration in the drafting of a dispute resolution clause in an international commercial agreement. [View Checklist]
GUIDE TO PRIVATE SECTOR DISPUTE RESOLUTION IN THE NAFTA REGION
To assist private investors and businesses with investments or operations within the NAFTA region in the consideration and, if appropriate, the inclusion of dispute resolution mechanisms in the commercial agreement that establishes the business relationship between private parties from two or more NAFTA countries, the NAFTA 2022 Committee has prepared and posted on this website materials to guide the decision making with respect to existing methods of private dispute resolution.
This website also includes guidelines for the drafting process in the form of model mediation and arbitration clauses.