Darrel Pearson comments in Canadian Press on the emergence of section 232 as major issue in Canada-U.S. NAFTA negotiations. The section allows the United States to use national security as a reason to place tariffs on foreign imports. Darrel says:
“I think the Section 232 issue is very big. Chapter 19 dispute resolution is less important.”
“I think it is clear that without Section 232 usage being resolved, Canada remains at significant risk,” (Canadian negotiators didn’t make the tariffs a major issue at the outset of the talks in order to avoid giving the U.S. too much leverage, he added). “It may have been a better strategic move to negotiate Section 232 separately, eliminating a Canadian ‘ask’ from the negotiations so as not to add to the U.S. leverage, but the risks of continued threats of 10 or 25 per cent are too large.”