2 July 1997
The Financial Post, Editorial

U.S. trade laws untenable

In an era when most trading nations are busily constructing a commercial system based on international rules, it's sad to see the biggest trader strike off in directions that undermine the system.

The U.S. Congress and several state and local governments have recently passed laws that do just that.

In general, they seek to punish governments the U.S. doesn't like by hitting trading partners of these perceived pariahs. These laws have been rightly condemned for their extraterritorial nature, and Canadian companies have had the bad luck to be caught in the crossfire.

For example, the Helms-Burton Act, designed to bring down the Cuban government, provides for against foreign firms operating on what was U.S.-owned prperty in Cuba before the 1959 revolution. As a result of those, eleven executives of Canadian mining company Sherritt International Inc., which has Cuban operations, have been banned from the U.S.

Last week, U.S. Senator Alfonse D'Amato warned Bow Balley Energy Ltd. it is contravening the Iran-Lybia Sanction Act, a bill to combat terrorism. Bow Valley is part of a consortium bidding on a $40-million oil well service contract in Iran. D'Amato said Bow Valley is a "pariah company known for supporting rogue states," and that it is "aiding and abetting a terrorist regime." Bow Valley says it's doing nothing illegal under Canadian law. A Canadian government spokesman correctly notes that "it is inappropriate for Sen. D'Amato to use this language against any Canadian, non-American or even an American company."

Broader and more frightening U.S. legislation is in the works. One mind-boggling law would impose penalties on governments thought to be persecuting Christians, and companies dealing with such regimes. As a trading nation, Canada has no choice but to oppose those U.S. actions that extend Washingoton's arbitrary reach beyond its borders.

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