Canadian Production in and to American Markets: Bilateral Trading Issues

Abstract

The main concern of this article is the bilateral trade relationship between the United States and Canada, and specifically trade involving the energy industry. The main areas of the trade relationship are examined. First, the aims of the North American Free Trade Agreement are examined to show how it differs from, expands and improves upon the Free Trade Agreement. Second, four areas of commercial law are examined: The Uniform Commercial Code; U.S. federal legislation designed to control conflicting state laws; products liability dealing with the potential liability of Canadian manufacturers to American consumers; and the United Nations Convention on Contracts for the International Sale of Goods. Third, there is advice to Canadian manufacturers on ways to avoid becoming liable for American tax. Fourth, the harmonization of American and Canadian trade and financial statutes in the areas of countervailing duties, dumping, anti-trust and customs tariffs is discussed. This is followed by advice on the different taxation policies followed by the United States and Canada and the implications for bilateral trade. Provisions for the transfer of possession of products are discussed as are immigration questions raised by the entry of Canadians into the United States to sell their products. Finally, the regulation of interstate commerce in the United States is examined.