When Congress and President Obama eliminated funding for a controversial NAFTA trucking program last month, the Mexican government, claiming this was a violation of NAFTA, responded by raising tariffs on a variety of U.S. goods.
Now, Mexican trucking companies are also getting involved and demanding compensation from the United States government. CANACAR, a trade association representing Mexican trucking companies, has filed a notice of arbitration which initiates the NAFTA investor-state challenge process. Inside U.S. Trade reports that the U.S. State Department vowed to fight CANACAR's claim "vigorously".
Under NAFTA, investors are given special rights and if they feel their ability to make profit has been compromised by a regulatory change, they are empowered under NAFTA to seek compensation directly from the trading partner country.