This volume examines the controversial dispute settlement mechanisms of the 1989 Canada-U.S. Free Trade Agreement and the expectations of the countries that have agreed to them. Drawing comparisons to the successes and, more important, to the failures of the present GATT accord, Dr. Anderson finds that the degree of willingness on the part of the United States to accept the dispute settlement apparatus will have a significant impact on future, broader agreements on resolving international trade disputes. This book is essential reading for anyone trying to stay current with NAFTA debates, including policymakers, political scientists, economists, and specialists on international trade. This book examines what is arguably the most critical and controversial issue of the 1989 Free Trade Agreement signed by the United States and Canada: dispute settlement mechanisms. Debates over this issue have sharpened as the number and intensity of trade disputes have risen due to increasing international competition. More and more groups are calling for the United States to adopt trade policies that will counter the unfair practices of foreign governments. Others argue that such policies will jeopardize the success of NAFTA and skew world trade systems.Andrew D. Anderson explores this central debate, considering whether the United States will accept international agreements on the mechanisms to settle trade disputes or will resort to the strong arm of its political system. His careful and detailed analysis surveys the development of dispute settlement mechanisms, discusses the expectations of the countries that have agreed to them, and evaluates whether the mechanisms are being successfully implemented. Drawing comparisons to the successes and, more important, to the failures of the present GATT accord, Anderson finds that the role of the United Statesand its degree of willingness (or unwillingness) to accept the dispute settlement apparatushas significant ramifications for future, broader agreements on resolving international trade disputes. This book is essential reading for anyone trying to stay current with NAFTA debates, including policymakers, political scientists, economists, and specialists on international trade.

Table of Contents:
Corporations and the capture of trade policy; domesticating the GATT - an overview of the design and use of the US and Canadian trade law systems; free trade and fair trade - examining the biases in the application of the US-Canadian "unfair" trade law systems; resolving international trade disputes - the GATT multilateral and the Canada-US FTA bilateral DSM processes; an economic evaluation of the DSMs in the Canada-US FTA - chapter 19; North America FTAs, consumer welfare and the resolution of general trade disputes; the failure of the proposed multilateral subsidies code procedures in the "Dunkel Text" of the GATT Uruguay round.