Trudeau insists on dispute resolution mechanism for Nafta deal

[OTTAWA] A revamped continental trade deal must include a dispute resolution mechanism, Canadian Prime Minister Justin Trudeau said on Tuesday, pushing back on US demands to get rid of binational panels to challenge anti-dumping and countervailing duties.

"We've said from the very beginning that we need a dispute resolution mechanism like Chapter 19 and we will hold firm on that," Mr Trudeau said in Vancouver on the eve of the resumption of talks with the United States.

"We will not sign a deal that is bad for Canadians, and quite frankly, not having a Chapter 19 to ensure that the rules are followed would be bad for Canadians."

He explained that the mechanism helps to ensure "that everyone plays fair" in a new North American Free Trade Agreement, or Nafta 2.0.

Canada has used the provision to successfully challenge US duties on Canadian lumber and other key sectors.

Without such a system, Canada would have to seek redress in US courts in trade disputes.

AFP