IF THE LUMBER TRADE deal signed in July falters, the stage is set for a fight over the North American Free Trade Agreement. Litigation is expected to continue until the settlement takes effect in October. The Canadian side has won every battle under NAFTA, and the open question is whether U.S. industry can wriggle out from under its losses.
In U.S. courts, American lumber has made two creative arguments. It argues that the World Trade Organization effectively trumps NAFTA. And it seeks to declare a keystone of NAFTA unconstitutional. Steptoe & Johnson’s Mark Moran, who represents Canada, says of U.S. lumber mills: “Their real complaint is that they don’t like NAFTA.”
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