FAAE Committee Report

LIST OF RECOMMENDATIONS

Recommendation 1:

That the federal government move beyond informal consultations with the United States on NAFTA trade dispute settlement matters, and actively and formally engage the United States to the extent necessary, but particularly through the use of the NAFTA’s Chapter 20 (see Recommendation 12), to ensure that the original intent of Chapter 19, and thus the NAFTA, is respected.

Recommendation 2:

That the Government of Canada work with its NAFTA counterparts to develop criteria to restrict the introduction of trade remedy challenges under Chapter 19 that are frivolous and/or without merit.

Recommendation 3:

That the federal government collaborate with the United States and Mexico to give Chapter 19 panel rulings precedent value over subsequent panel rulings covering the same products.

Recommendation 4:

That the Government of Canada enter into discussions with its NAFTA partners to reduce the frequency of multiple remands on the same case.

Recommendation 5:

That the federal government officially protest to the U.S. government and vigorously defend the legitimacy of Chapter 19 and the NAFTA when the United States undertakes actions that disrespect the legitimacy of panel decisions.

Recommendation 6:

That the federal government engage with its NAFTA partners to ensure that extraordinary challenge committees are used only in extraordinary circumstances and not as a general appellate court.

Recommendation 7:

That the federal government collaborate with Mexico and the United States on consolidating, adequately funding and improving the competence of the NAFTA Secretariats, in order to provide the Free Trade Commission with the support that it requires to adequately administer its treaty functions.

Recommendation 8:

The Government of Canada work with its NAFTA partners to create a permanent roster of panellists, clarify the rules on who is allowed to serve on a panel, increase the remuneration of experts serving on Chapter 19 panels and ensure that each country has a full roster of panellists. The federal government should consult with industry when creating this permanent list.

Recommendation 9:

That the Government of Canada pressure the U.S. to ensure that Section 129 of the Americans’ Uruguay Round Agreements Act not be used to avoid the implementation of NAFTA panel determinations.

Recommendation 10:

That the federal government explore all avenues to achieve a common definition of dumping in the agricultural sector that excludes production costs in integrated markets, as well as a common timeframe for the investigation of dumping charges that reflects the production or business cycle.

Recommendation 11:

That the federal government actively consider using Article 1903 in instances where its NAFTA partners change their laws with the goal of negating their NAFTA obligations.

Recommendation 12:

That the federal government immediately trigger Chapter 20 consultations with the United States regarding the Chapter 19 concerns raised by witnesses in this report.

Recommendation 13:

That, should the United States lose a Chapter 20 case and fail to implement its NAFTA obligations, the federal government give serious consideration to withdrawing NAFTA benefits in conformity with NAFTA Article 2019 from the U.S. until such time as it complies with its NAFTA obligations.

Recommendation 14:

That the Government of Canada develop a long-term, consistent policy of legal-aid support for Canadian softwood lumber associations until such time as the dispute is ended, in recognition of their high legal costs. Furthermore, we recommend that the government devote more of its own resources to the prosecution of the softwood lumber dispute. As a general rule, the federal government should provide financial support (e.g., assistance for the payment of legal fees and provision of loan guarantees) to those industries adversely affected by NAFTA trade remedy cases.

Recommendation 15:

That the federal government increase its use of parliamentarians as advocates in trade disputes, and that Parliament broaden the use of members’ travel points beyond Washington, D.C., to travel throughout the United States on official parliamentary business.

Recommendation 16:

That the federal government increase support to programs that build coalitions with interested American groups and sensitize Americans, especially American state and national politicians, to the benefits of trading with Canada.

Recommendation 17:

That the Government of Canada, with the active participation of parliamentarians, engage formally with Mexico to address joint concerns about the American treatment of NAFTA Chapter 19.

Recommendation 18:

That in the event the United States is unsuccessful in its extraordinary challenge, the federal government pursue to the full extent of its abilities the return of Canadian softwood lumber duties and that the return of 100% of these duties, with interest, be a fundamental condition of any negotiated softwood lumber settlement.

Recommendation 19:

That Canada work with Mexico to (a) conclude an understanding with the United States that explicitly provides for the return of duties collected in cases where the application of trade remedies is found to violate the NAFTA and (b) discontinue the Byrd Amendment’s application to Canada and Mexico.

Recommendation 20:

That the federal government continue to pursue all avenues open to it, including retaliation under the World Trade Organization, the U.S. Court of International Trade and the NAFTA, in response to the illegal Byrd Amendment.