DISPUTE RESOLUTION REMAINS INTACT

In what is widely seen as the key win for Canada, the dispute resolution processes (also known as Chapter 19) will remain intact.

Chapter 19 allowed Canada to challenge duties placed on Canadian exports at an expert panel with representatives from both countries. For example, Trudeau’s government asked for a Chapter 19 review of recent U.S. tariffs on softwood lumber and Bombardier aircraft and Canada has been consistently successful arguing its case at these panels. Without Chapter 19, these cases would be resolved in court in the country imposing the duties, so the U.S. would be arguing on home turf.

In trade negotiations, a big win usually requires some kind of concession and it appears that U.S. President Donald Trump was willing to back down on the dispute process in exchange for a little more access to Canada’s dairy market.