Canadian Lawyer InHouse

MARCH 2018 34 INHOUSE opportunities inherent in those decisions. "It's not all about duty," says Brenda Swick, partner at Dickinson Wright LLP in Toron- to, with a practice that encompasses interna- tional trade and includes WTO/NAFTA dis- pute settlement. "There may be certification or inspection report requirements. If you're an exporting company and you want to diver- sify your markets, you'll also need to look at export reporting requirements from Canada and issues around reporting when you import to foreign jurisdictions." Companies selling to the U.S. market are also contemplating the cost of moving some production across the border or acquiring a U.S. company to manufacture their goods. Other manufacturing companies may find themselves doing extra work to move products across the border. "If a U.S. customer for your product is suddenly paying duty, they'll come to you for help to see if the product might still be exempted," says Swick. "Your supply or sales contracts should be clear on who is respon - sible for payment of duties and any other costs related to trade if NAFTA goes away." Even overland transportation between Canada and Mexico could be more prob - lematic if border inspections become more vigorous. Some Canadian companies are already investigating the relative costs of alternate air and sea routes. However, even if an altered NAFTA or a reversion to WTO tariffs sees the U.S. imposing increased duties on Canadian im- ports, Canada doesn't have to even up the score by imposing countervailing duties. "Canada is legally entitled to impose duties of its own on imports, even if it's simply to generate revenue, but they're not obliged to," says Swick. "In certain sectors, you have to be aware of remission opportunities under the Financial Administration Act for the minister to provide remission of duties over a period of time as your company adjusts to the duty impact. That's an issue that every manufac - turer will want to look at." Companies can also make submissions to the federal government to reduce tar- iffs. For example, if a product isn't made in Canada, there's no good reason to levy an import duty on that product because it isn't protecting a Canadian producer. Some companies are also exploring litiga - tion against the federal government should NAFTA be derailed. "You can imagine the arguments that will be made if companies relied on a free trade We've certainly heard from clients who are contemplating the effects of a NAFTA withdrawal, and they're looking to us for advice on how to negotiate a different trade landscape. GREG KANARGELIDIS, Blake Cassels & Graydon LLP I n d u s t r y S p o t l i g h t For In-house Counsel...Legal News at Your Fingertips Sign up for the Canadian Legal Newswire InHouse edition today for free and enjoy great content from the publishers of Canadian Lawyer, Law Times, Canadian Lawyer InHouse and Lexpert. THE LATEST NEWS Keep abreast of essential late-breaking legal news and developments. THE BEST COMMENTARY Access trusted analysis and opinion on the cases and changes that are shaping the legal landscape. DELIVERED WEEKLY Your profession can change quickly, which is why you need the freshest, most recent information. FOR READING ON ANY DEVICE Get the news and opinions you need on any device. Whether you read at work, or on the go, the newswire adapts to your screen. Visit www.canadianlawyermag.com/newswire-subscribe Untitled-3 1 2018-02-09 12:45 PM

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