What disadvantages does NAFTA have for Canada?
– Because we are dealing with a powerful partner (the US) there is an argument that we are at a disadvantage in enforcing our rights under NAFTA. This was observed in the softwood lumber dispute, where Canada won several NAFTA panel rulings but the US continued to restrict softwood imports. Conversely, because so much Canadian business is dependent on access to the US market Canada cannot easily retaliate when the US fails to honor it’s commitments. This, critics argue, means that the US can adopt protectionist practices with impunity while preventing Canada from doing so. An example might include the massive subsidies given to US agricultural producers (though Canada has challenged this at the WTO, not under NAFTA). – An extension of this is the contention (made by David Orchard and others) that NAFTA (and the Canada US Free Trade Agreement before it) are tools of American cultural and economic imperialism. The concern is that Canada is increasingly signing away its ability to make it
