International trade tribunals seen trumping state laws

By Dave Gram Associated Press Writer / December 2, 2007

MONTPELIER, Vt.—A Canadian company wants to open a new plant in Claremont, N.H., to bottle fresh water from a source in Stockbridge, Vt.

But if Vermont wants to limit how much water the company takes, it may run afoul of the North American Free Trade Agreement.

States around the country are growing increasingly worried about the threats posed to their laws and regulations by the secret tribunals that resolve disputes in international trade. Experts say everything from environmental rules to the licensing of nurses and other professionals could be affected.