Prime Minister Justin Trudeau says the U.S. president’s aversion to following rules is a key reason Canada can’t budge on a dispute settlement provision in a revamped North American Free Trade Agreement.
NAFTA’s Chapter 19 allows companies who feel wronged by anti-dumping, or countervailing duties, to have their issues settled by independent panels of experts from the countries caught in the dispute. The chapter has been repeatedly used by Canada to fight U.S. tariffs on softwood lumber.
However, U.S. President Donald Trump wants Chapter 19 scrapped. He claims the dispute resolution process infringes on his country’s sovereignty.