Re: [Paddlewise] Run for the border

From: Dan Hagen <dan_at_hagen.net>
Date: Thu, 01 Jun 2000 20:06:12 -0700
Michael Daly wrote:
> 
> I've always thought it odd that the Canadian companies (at least one that I know
> of) would have such a big difference between what they charge here versus the
> US.  I would have though some near-border US vendor would cry foul and bring
> in the NAFTA police.  

A Canadian company charging a higher price for its product in the U.S.
does not violate NAFTA, or any other of our trade laws. On the other
hand, if Canadian manufacturers were to charge *less* in the U.S. (than
in Canada), that *would* be a violation of the anti-dumping provisions
of our "fair trade" laws. If this were to occur (or appear to occur),
U.S. kayak manufacturers could file a complaint, possibly resulting in
anti-dumping duties being imposed on Canadian kayaks. Our trade laws are
designed to encourage foreign manufacturers to charge more for products
in the U.S. than in their own markets. Of course such laws do not
protect U.S. consumers (who end up paying higher prices), but rather
protect U.S. producers from "unfair" foreign competition. Our abuse of
fair-trade laws is an ongoing point of contention in trade talks between
the U.S. and our trading partners. 

eol

Dan Hagen
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Received on Thu Jun 01 2000 - 20:06:41 PDT

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