If U.S. President Donald Trump imposes tariffs on Canadian goods as he’s repeatedly threated to do, experts say Canada has a strong case to challenge it under the Canada-U.S.-Mexico free trade agreement.
The question, though, is how quickly any decision may come through the process — and more importantly, whether the U.S. would respect any decisions from the outcome.
“A rules-based system is only as good as the willingness of the government who’s subject to it, to comply with it,” said Wendy Wagner, a partner at Gowling WLG.
The free trade agreement is a nation-to-nation agreement, so there’s no one else to appeal to if a country decides not to respect a decision.
America’s past performance on adhering to trade decisions has been mixed. Areas of contention include complicated measures such as figuring out how much foreign content is in an automobile or the long-running softwood lumber dispute.
Story continues below advertisement
What Trump has threatened, …