NAFTA’s Chapter 20, entitled “Institutional Arrangements and Dispute Settlement Procedures”, is an important dispute settlement mechanism governing State-State Disputes Settlement. Article 2005(1) of NAFTA provides that disputes that arise in connection to both treaties. This paper is to elucidate the legal mechanism, and to compare the regulatory framework of State-State Disputes Settlement between NAFTA and Japan-Mexico FTA. It focuses on status of scope of application, dispute settlement procedures. Part Ⅰ explains the scope of application. Part Ⅱ discusses the regulations of dispute settlement procedures, for example Consultation, Request for an Arbitral Panel, Panel Selection, Role of Experts and Scientific Review Boards. Part describes the deference oⅢf procedures between NAFTA and Japan-Mexico FTA. The conclusions are the procedures between the Chapter 20 of NAFTA and the Chapter 15 of Japan-Mexico FTA are almost the same and are applicable to all disputes regarding the interpretation of application of the NAFTA. The Regulations of dispute settlement procedures in NAFTA are clear than Japan-Mexico FTA, for example, Qualifications of Panelists, Panel Selection, Role of Experts and Scientific Review Boards.