According to CNN.com, Canada is imposing a 39.4% anti-dumping duty on frozen pizza imported from the United States.
Why is this a violation of NAFTA? Do I just not understand the complexeties of this free trade agreement?
okay, “Is this a violation of NAFTA?”
And yes, I did preview.
If Country A violates a trade agreement, then there is usually a clause that Country B can invoke to penalize the violation. “Dumping” is a common violation. Now, whether Country A really did violate the agreement or whether Country B’s response is warranted is up for government officials to haggle over. Sometimes these end up in the World Court if that’s how the treaty was set up.
Now that makes sense. So Canada is saying that the US is violating NAFTA and is acting accordingly. Thanks.
NAFTA establishes its own tribunal to deal with such matters; here is a recent article about some NAFTA litigation.