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CCCA_V3No1_Dept-CrossBdr-FIN.qxd:CCCA_V1No2_Dept-CrossBdr-V1.qxd 1/21/09 2:52 PM Page 16 Cross Border Winds of change? There’s talk of changes to Canada-U.S. relations under President Obama. Don’t hold your breath. n the night Barack Obama was to adopt a new attitude in its deal- Oelected as next president of the ings with other countries. United States, the optimism that spread “Obama has spoken of throughout much of the world was change and he will need to enough to make everyone forget — for have good relations with just a brief moment — that the global allies to implement a lot economy was mired in one of the of that change. It will be worst economic crises since the Great a theme of his presiden- Depression.There was no question that cy,” says P. John Landry, a the message of hope and change that lawyer with Davis LLP in the young, biracial Democratic candi- Vancouver, an expert in trade date carried to victory had struck a and energy-related matters, chord among so many anxious to see a including issues arising under the North Agreement, NAFTA and theWTO, among new day. American FreeTrade Agreement (NAFTA) others.“The U.S. has preferential and guar- But now that Obama has been inaugu- and theWorldTrade Organization (WTO). anteed [rights] to Canada’s energy exports,” rated, the question asked by many in the For Canada, this attitude will be a which is something that the Canadian gov- world is how much — and what — will much-welcome change, he says: “It was ernment will certainly address. actually change in terms of how the U.S. very adversarial [during the Bush adminis- At the same time, “the Canadian gov- deals with its allies and trading partners? tration], especially with regard to softwood ernment would want to open up the issue For Canada, the question is significant as lumber.”Adds Pearson:“There were major of dispute resolution,” says Landry. He the U.S. is its closest neighbour, ally and problems during the last eight years, partly notes that although Canada effectively trading partner. The short answer: not because Canada didn’t line up behind the won every international trade panel and much — and a lot. Either way, Canada has U.S.in Iraq.But Obama will take the posi- trade tribunal decision on the softwood reason to be cautiously optimistic. tion with Canada that it is the U.S.’s best lumber debate,“it was never able to bring The first task of the Obama administra- trading partner.” the trade war to an end with that process. tion is to get the moribund economy Still,one black cloud continues to linger Canada had to get the dispute settled in a moving again.“In the first couple of years, over the expected improvement of rela- negotiated basis.”And that negotiated solu- the focus will likely be on stabilizing the tions between Canada and the U.S.,name- tion was not as favourable to Canadian financial system, developing green energy ly Obama’s election pledge to re-open companies as the decisions of the panels technologies, education reform, middle NAFTA. Although the initiative risks and tribunals. class tax cuts, reforming immigration and destabilizing our trading relationship, the But hang on a minute. There are signs dealing with the Iraq war,” says Darrel good news is that it could give Canada an that the promise to renegotiate NAFTA Pearson, a partner with Bennett Jones in opportunity to discuss its concerns with amounts to little more than election rhet- Toronto who focuses on international the agreement. oric. Indeed, Obama has appointed Rahm trade and customs law. “It would be dan- Canada has bargaining chips on its side. Emmanuel and Bill Richardson to his cab- gerous if he touches issues such as free “If there’s dialogue to open up NAFTA,we inet, both key players in the ushering in of trade prior to stabilizing the economic cri- will see only positive changes for Canada,” NAFTA in the 1990s during the Clinton sis and putting into place a domestic eco- says Greg Kanargelidis,a partner with Blake, administration. Obama’s trade advisers nomic strategy.” Cassels & Graydon in Toronto who repre- realize how important NAFTA is, says Better yet, there are already indications sents clients in cross-border trade issues aris- Landry. “And there are difficulties with that the new U.S.administration is prepared ing from the Canada-U.S. Free Trade opting out — what is the alternative?” 16 CCCA Canadian Corporate Counsel Association SPRING 2009