NAFTA Renegotiations: an overview April 19, 2018 Daniele Bertolin i - - PowerPoint PPT Presentation

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NAFTA Renegotiations: an overview April 19, 2018 Daniele Bertolin i - - PowerPoint PPT Presentation

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NAFTA Renegotiations: an overview April 19, 2018 Daniele Bertolin i Ryerson University TRSM daniele.bertolini@ryerson.ca For presentation at the Workshop NAFTA Negotiations: Exploring the Implications (April 19, 2018), organized by

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NAFTA Renegotiations: an overview

April 19, 2018 Daniele Bertolini

Ryerson University – TRSM daniele.bertolini@ryerson.ca

For presentation at the Workshop “NAFTA Negotiations: Exploring the Implications” (April 19, 2018), organized by the Ryerson University Department of Law & Business and supported by the Ryerson CSR Institute

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Overview

1.What NAFTA is?

  • The Canadian free trade framework

2.NAFTA Renegotiations

  • Automotive Rules of Origin
  • Dispute Resolution Mechanisms
  • NAFTA termination: credible threat?
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What is NAFTA?

North American Free Trade Agreement January 1, 1994:

  • Reduce Import Duties and
  • ther Trade Restrictions
  • Note: NAFTA creates the

world’s largest free trade area – 450 million people – $20 trillion worth of goods and services

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NAFTA and Free Trade Framework

  • Canada (Mexico and US) are

members of GATT/WTO

  • Other Canada FTAs:
  • CETA
  • Korea
  • Colombia and Chile
  • Negotiating with India
  • Prospects of China
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NAFTA renegotiations

  • Started on June

2017

  • As of now: 7 rounds
  • f negotiations
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Automotive Rules of Origin

  • Current ROG
  • 62.5% North-American parts
  • Original US Position
  • 85% North-American parts
  • 50% US specific content
  • Current US Position
  • 75% North-American parts
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Dispute Settlement – Chapter 11

  • Current NAFTA
  • Investor-State
  • US Position
  • Eliminate
  • Canada Position
  • Enlarge: permanent investment

court modeled after CETA

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Dispute Settlement – Chapter 19

  • Current NAFTA
  • AD and CVD Binational Panels
  • US Position
  • Eliminate: Ch. 19 Panels are

more prone to issue remand decisions in US cases than Canadian cases

  • Canada Position
  • Fundamental element of NAFTA

structure

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NAFTA termination: credible threat?

  • Can the US President unilaterally

withdraw?

  • Congress authority on “commerce”
  • “Uninstalling” Legislation
  • Possible scenario post-

termination:

  • 1. Return to Canada-US FTA
  • 2. Fall back to GATT rules
  • 3. Still NAFTA with Mexico and no US

http://money.cnn.com/

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Conclusion

  • NAFTA is in many respects a valuable

trade agreement

  • Renegotiation Process provides the
  • pportunity to modernize NAFTA
  • Canadian Free Trade Framework would

mitigate a NAFTA demise