MARCH 2018
32
INHOUSE
T
he North American Free Trade Agreement has
governed trade between Canada, the United
States and Mexico since 1994. Negotiators from
all three countries are working to iron out their differ-
ences under an end-of-March deadline and a threat from
U.S. President Donald Trump of
"probably terminating
NAFTA at some point" if an agreement can't be reached.
Among its objectives, the U.S. wants to eliminate the
bi-national chapter 19 mechanism to resolve trade dis-
putes, limit opportunities for NAFTA partners to bid on
U.S. government contracts and to negotiate stricter rules
of origin for tariff-free treatment of goods.
Is the possibility of blowing up the trade deal a seri-
ous threat to Canadian manufacturing companies or is
Trump's bluster just a negotiating ploy?
"It's not even clear that a notice of termination of
NAFTA by the U.S. administration would result in the
termination of NAFTA," says Riyaz Dattu, partner, in
-
ternational trade and investment law at Osler Hoskin &
Harcourt LLP.
"It's likely that U.S. law would still have
to be complied with to repeal NAFTA."
I n d u s t r y S p o t l i g h t
WHAT
IF THERE'S
NO
In-house counsel
for manufacturing
companies hoping
for the best but
preparing for
the worst.
BY PETER KENTER
