THE IMPACT OF NAFTA ON TRANSPORTATION COMPANIES - A CANADIAN POINT-OF-VIEW

The purpose of this paper is to examine, from a Canadian perspective, the potential for partnerships under the North American Free Trade Agr eement (NAFTA) and the factors which will influence the type of partne rships developed within the transport sector as a result of NAFTA. The paper begins by examining Canadian intentions at the negotiating tabl e, and Canada's trade stake in trilateral trade, before moving to exam ine the types of partnerships possible as well as the factors which mu st be considered to influence the formation of alliances. The changes which NAFTA makes in the business environment in the form of non-tarif f barriers such as operating and safety standards, access to cargo (ca botage), ownership regulations and investment screening are discussed in detail, as are their implications for each mode. Although the agree ment will generate greater trade and new opportunities, the paper conc ludes that the agreement offers greater opportunity to American transp ort firms with the financial and managerial strength to exploit the po tential of the agreement, but receives a mixed review from a Canadian point of view.