US-Canada Trade Relations An Overview

 Historically, each of the United States and Canada has been finest trading partner of others. Actually, the two-way commerce between the Canada and the United States outweigh any other international bilateral trading relationship.' There is a chance that this commerce will grow. The Trade Agreement between the United States and Canada, signed on January 2, 1988, Ronald Reagan and Prime Minister Brian Mulroney will

Increase trade liberalization between the two biggest trading

companions. This Comment explores the scope of the FTA. (FTA) adds and subtracts. This Comment additionally indicates potential obstacles to implementing the Agreement, such as the political procedure, the authority of the provinces, and Canadian views on trade. Lastly, this Comment examines a number of upcoming issues and makes recommendations possible outcomes for the Free Trade Agreement's future relations Agree.

There are twenty-one sections and eight sections in the Agreement. sections. The first section outlines the goals and parameters of the terminology used in the FTA and offers meanings for them. The goal of the agreement is to create a free trade area that is compatible with between the United States and Canada, in accordance with GATT regulations. The Agreement specifically aims to remove trade restrictions in commodities and services between the two nations to encourage fair competition; and to loosen investment restrictions; to create efficient processes for carrying out the Agreement & settling conflicts to establish the framework for more bilateral and multilateral collaboration.

The FTA's fourth section addresses investment, services, and temporary admission.Nine Chapter 14 offers revolutionary guidelines in services that guarantee nondiscrimination under upcoming national legislation and regulations.20 Chapter Fourteen discusses a variety of services. Chapter 15 permits brief admission into every nation. of entrepreneurs who engage in investing operations as well as trade in goods and services. 2. The Agreement's Chapter 16 provides for both for the US to keep its open investment policy and for Canada to continue to liberalize its investment climate. 3.

Chapter seventeen, Section Five of the FTA eliminates Canadian

prejudice against financial firms in the United States, and enhances the access to investments in the two markets. This section of the Agreement makes a number of specific promises that should expand the market. and hence cheaper borrowing expenses. 2–4

FREE TRADE CONTRACT

both nations.2 Chapter Nineteen offers an unparalleled panel for international dispute resolution in matters involving countervailing duties (CVD) and antidumping (AD). Six The panel will utilize each nation's AD/CVD legislation. A request to the panel will initiate the panel review process. governments, of anybody who would have otherwise contested the decision made in court.2 7 A benefit of the panel is that it will offer a somewhat prompt answer for AD/CVD problems. Section Seven of FTA Chapter Twenty is devoted to the following topic: topical matters and more broad guidelines.2. The primary industry concern of The FTA's exemption of a few Canadian "cultural industries" is seen in chapter twenty.2 9 In Chapter 21, Section 8, it is provided for information sharing, modification, and cancellation of the Contract.30 What's Left Out of the Free Trade Agreement Intellectual property, the car industry, and the Canadian cultural sectors are not included in the FTA. Canada's robust national strategy of subsidization has resulted in the exclusion of the cultural industries. Similarly, the auto industry has been largely left out since the Auto-Pact effectively reduced tariffs and other trade obstacles. However, some segments of the American and Canadian auto industry have voiced concerns that the FTA could do more to balance auto trade between the two nations."3. The FTA has mainly excluded the intellectual property sector, most likely due to negotiating challenges

Particularly noteworthy is the bilateral adjudication panel

The bilateral panel of adjudication, which is mentioned in section six, chapters eighteen and nineteen of the Free Trade Agreement, is one of the most innovative features of the agreement. Two delegates from each nation will make up the bilateral panel, and they will be picked from a roster kept in each nation.The remaining four members will select the fifth person, who will serve as chairperson, either collectively or by drawing lots.

The panel will only hear arguments from both parties in the event that prior dispute resolution procedures are unsuccessful.39 The panel will be able to consider cases involving general disagreements as well as disputes pertaining to the antidumping (AD) 40 or countervailing duty (CVD) 41 laws of either nation. 42 The panel will render a decision.

FREE TRADE CONTRACT

minations depending on national administrative choices.

In addition, the panel will evaluate decisions using the same standard of review as domestic courts, evaluating whether the administrative agency correctly implemented the national AD/CVD law."This binational panel represents a first for international trade between the United States and its trading partners," the statement reads, despite some pushback from the US to the group's existence. Nevertheless, Canada has insisted on having panel 6 included because it views the American AD/CVD laws and processes as repressive and discriminatory.

Congress has debated issues related to the panel procedure. This discussion focuses on the constitutionality of the panel." Regarding the panel, there are three questions: 1) does the FTA violate the Appointments Clause of the United States Constitution; 2) does the FTA lack the guarantees necessary to guarantee judicial power under article III of the Constitution; and 3) could the FTA's failure to provide for judicial review of the panel's decisions amount to a denial of due process?49 The constitutional clause that gives Congress the authority to establish courts with appellate jurisdiction serves as the cornerstone of congressional agreement.