The Impact of International Trade Agreements on Wisconsin

State legislators, faculty from the University of Wisconsin-Madison, government officials and members of Wisconsin’s legal community came together at the Madison Club on September 21, 2005 to hear Professor Jose Alvarez (Columbia Law School) speak on NAFTA’s investment rules, their judicial application, and their impact on the United States, including Wisconsin state government.
 
Much attention has been given to NAFTA’s impact on the overall economies of the United States, Mexico and Canada.  However, what are the legal and regulatory impacts of trade agreements such as NAFTA?   In his talk, Professor Alvarez discussed recent court cases that have interpreted NAFTA, how investment rules have changed over time in response to increasing legal challenges from foreign investors, and what impacts these trade agreements have on state laws and regulations, and on federalism, more broadly.

Professor Alvarez  noted that under international investment treaties, foreign investors are sometimes granted different or better rights than local investors.  All levels of government –state, federal, and local –are responsible if they violate the rights of foreign investors.  This alters the legal context within which the state government operates, requiring Wisconsin to consider whether a law discriminates against these foreign investors.  In addition to having to pay attention to this new level of law, state governments also need to understand that as cases are brought under these international investment rules, they may introduce new tensions into federal-state relations.

The event was sponsored by the Center for World Affairs and the Global Economy (WAGE) and the Global Legal Studies Initiative.  Special thanks to Kenneth Davis, Dean of the University of Wisconsin-Madison Law School, and the UW European Union Center of Excellence for their support.  We also would like to thank our attendees including, State Representatives Ballweg, Townsend and Wieckert, for their participation in this event.