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While testifying on NAFTA in front of the US Senate Foreign Relations Committee, former Canadian Prime Minister told them:
“Canada is privileged to have the United States as a neighbor and friend. And the United States should thank its lucky stars, everyday, that they have Canada on their northern boarder.
This is is the most successful and peaceful bilateral agreement in world history”
“Canada is privileged to have the United States as a neighbor and friend. And the United States should thank its lucky stars, everyday, that they have Canada on their northern boarder.
This is is the most successful and peaceful bilateral agreement in world history”
Multinational trade negotiations are often accused being a closed door mess with a never ending series of mistakes, but Canadian negotiating strategies on NAFTA have been very successful.
Successful is a subjective word and this site aims to keep to the facts and avoid too much opinion, so let’s define success. In the context NAFTA negotiations, success is defined as a trade agreement that is as favorable to your country as possible, with least amount of drama.
Canada, so far, has been “walking softly and carrying a big stick” with the following successful tactics:
1. Starting Negotiations With Demands: Canada laid out its criteria early in the process. This instantly gave the Canadian negotiators important bargaining chips to potentially throw in at the end to close a deal. Things like the dispute mechanisms and protecting the Dairy industry make great domestic politics, which bolsters your position with the other side, but are “nice to haves” and not truly critical to the success of a final deal.
2. Quietly Racking Up Negotiating Chips: In Canada’s case starting superficially unrelated proceedings, like attacking Boeing’s now demonstrably malicious claim against Bombardier, and starting a WTO claim against the US’ unfair trade practices, gives Canadian negotiators more “chips” to bargain with. Massive deals like NAFTA often include side arrangements to terminate other proceedings.
One of the most contentious issues between Canada and the United States on North American Free Trade Agreement (NAFTA) is chapters 11, 19 and 20 the dispute mechanisms. Chapter 19 is the one most are fired up about:
…binational panel of five arbiters, agreed upon by both parties, who will determine whether or not the duties have merit based on U.S. domestic laws.
Source: macleans.ca/opinion/why-naftas-chapter-19-is-worth-fighting-for/
Canada has politely stated that the United States is a massive economy with leadership that have inflated ego’s which are tied directly to high powered, big money, special interests. The combination means that without a dispute mechanism, US politicians will frequently bring unfair claims of NAFTA breaches that Canada will not be able to defend against. Canadian media and politicians (and even some American observers) have gone so far as to call this demand a ‘poison pill‘ using the logic that they know there is no-way Canada will accept a contract without a dispute process.
https://www.youtube.com/watch?v=OvrzlCFQ8eU