Modeled after NAFTA's infamous Chapter 11, FTAA will undermine the regulatory power of sovereign nations by permitting corporations to initiate "investor-to-state" lawsuits over any legislation that may impact their profits. For example, a NAFTA tribunal ordered the Mexican government to pay $16.7 million in compensation to the U.S. based Metalclad Corporation, after a Mexican state shut-down the company's toxic waste disposal facility, a contaminant to the local water supply. The ruling found that despite the site's destructive effects, the State Governor's actions (prompted by the concerned local community) had violated the corporation's inalienable "right" to profit. Furthermore, the exorbitant penalty was based on the concept of "regulatory expropriation", whereby a government is responsible for compensating a corporation not only for actual material loss, but for any potential profits that could have been attained in the future. Such rulings foster a system where governments, legally accountable to corporations, allow business interests to dictate the shape of any future legislation. Hear more about environmental impacts of FTAA.