Author Description

This paper begins with a description of the Canada-US Free Trade Agreement procedures for binational panel review regarding trade dispute settlements under Article 1904. It then summarizes the experience with that procedure and discusses some of its structural weaknesses and drawbacks. The third part analyzes changes to the review process under the North American Free Trade Agreement and explains how they are significantly adverse to Canadian interests. The softwood lumber dispute is considered as an illustration of nearly all the main structural weaknesses of the binational review process. This is followed by discussion of the track record of multilateral dispute settlement under the General Agreement on Tariffs & Trade, including the record on countervail and anti-dumping matters, and a review of the Uruguay Round's changes to that process. Part six outlines how the new World Trade Organization dispute settlement mechanism, in tandem with the Organization's agreements on subsidies and dumping, can be effectively used to challenge the imposition of duties by US trade authorities. The conclusion suggests a three-pronged approach to strategy in trade disputes with the United States.