Democracy: "A system of government by the whole population or all the eligible members of a state, typically through elected representatives."
Chapter 11 of the North American Free Trade Agreement (NAFTA) allows foreign investors to sue government when they feel expropriation has taken place. For example, a Canadian company had sued the United States for $970 million, under NAFTA's Chapter 11, because of a environmental regulation in California. Now this was not just some "hippy libs" trying to pass another law about the environment. It began over MTBE, a chemical added to gasoline to help clean the air. The problem with this chemical is that was found to cause cancer in lab rats. The major issue arose when the drinking water tested positive to MTBE contamination. The contamination was linked to several leaks in gas stations. American citizens living in or around the area did not feel comfortable with the idea of being exposed to MTBE through their water, and as much as the state tried to clean up the contamination, the tainted water spread. So the state enacted a regulation. This environmental regulation was passed on 25 March 1999, and it ordered MTBE be phased out of all gasoline sold in California. However, this was not welcomed by the Canadian company, Methanex, who is the largest producer of MTBE. A few months after the regulation was passed, Methanex sued the United States. Methanex explains their choice to sue under Chapter 11. Although, they do not mention the whole part about their product producing cancer in lab rats. They did not receive a settlement as of 2005.
Ok, we live in America, and one of the benefits of being an American is that anyone can sue the crap out of someone else for any reason whatsoever. So the aforementioned story on the surface seems like something acceptable by American standards. But the thing about Americans suing Americans is that it goes through the American court system. If the case goes to trial, American citizens are the jury. Wasn't it Lincoln who envisioned the future to have a government "of the people, by the people, and for the people?"
With NAFTA's Chapter 11, another citizen or company from a foreign country who is part of NAFTA can sue the United States of America. The suit filed is then reviewed by a tribunal (mostly international law experts), who make a decision. No American citizen or legislation is admitted. If the US loses, the government is subject to pay out. Now who does the government get all its money from? That's right, us! The American taxpayer. Where has democracy gone? The American people, in this instance, have NO voice in a matter involving themselves. Where has democracy gone?
On the other hand, an American citizen, or an American company can sue a foreign company under Chapter 11 if they feel they have been expropriated. The first claim filed under Chapter 11 was by an American company, Metalclad, against Mexico. You can go here to read the rest of the story.
I would like to think that America has the right to get rid of a chemical that has been found to cause cancer in lab rats. I would like to think that Mexican citizens have the right to demand that a company cleans up their toxic waste dump, before they start to accept more waste. I think that Canada should have the right to ban deadly chemicals produced by US companies that are banned in America without the fear that they will be sued for expropriation. I think that countries should have the right to put warnings on cigarette packages without the fear of being sued for expropriation. I think that if a product sucks, it needs to be fixed or taken off the market. I think that it is ridiculous that Metalclad won its claim against Mexico because a tribunal thought it appropriate.
The following is an exert from a speech given by our President on 6 November 2003:

Our commitment to democracy is also tested in the Middle East, which is my focus today, and must be a focus of American policy for decades to come. In many nations of the Middle East -- countries of great strategic importance -- democracy has not yet taken root.

All people deserve to be free. Democracy has been uprooted in this country, Mr. Bush. Should it not also be strategically important to build a firm foundation of democracy in our own country, before we try to impose this belief on others? Shouldn't we be a democratic country before we try to make other countries democratic? Would it not be a lie, a falsehood, Mr. President? But I suppose that because these countries are "of great strategic importance" we must not let them pass from our hands.