Chapter 19 of the North American Free Trade Agreement (NAFTA) deals with antidumping and countervailing duties. Recently, the US Department of Commerce slapped a preliminary 300 percent duty on the sale of Canadian aerospace firm Bombardier’s C Series aircraft in the United States, following a complaint by aircraft manufacturer Boeing alleging that Bombardier had received unfair subsidies from the Canadian and Quebec governments. A final decision by the US International Trade Commission on the dispute is expected some time next year.
Using NAFTA’s Chapter 19, Bombardier has the ability to appeal that decision, a method that has been used in the past, such as in softwood lumber disputes between Canada and the United States. In this video, CIGI Senior Fellow Armand de Mestral gives a brief history of Chapter 19 and explains why Canada would be very sorry to see it go.
