The Globe and Mail reports in its Friday edition that it looks like we are entering the post-NAFTA world. The Globe's guest columnist Lawrence Herman writes that Canada's move to take the United States to the World Trade Organization over its abuses of globally agreed rules is a clear signal that the North American free-trade agreement is up against the wall. Plan B is now operative. Taking the U.S. to the WTO diverts the matter from NAFTA turf, where the Americans hold most of the cards, and moves it to an international forum where all parties are equal and where judgments over whether the rules are being followed will be determined by a neutral panel. It is what the multilateral system was designed to do. By bringing its WTO case now, the Trudeau government recognizes that NAFTA cannot be repaired and that U.S. trade actions will only escalate with full encouragement under President Donald Trump's protectionist America First agenda. Canada is showing that it has offensive as well as defensive strategies. The problem until all of this jells will be continuing market uncertainty, compounded by the battle shaping up in Washington over whether Mr. Trump can legally withdraw from NAFTA without congressional approval.
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