Corporate Strategy and NAFTA When Environmental Regulations Are Barriers to Trade

Alan M. Rugman Faculty of Management, University of Toronto, 105 St. George Street, Toronto, ON M5S 3E6 E-mail: [email protected]; Thames Water Fellow of Strategic Management, Templeton College, University of Oxford, Oxford, OXI 5NY, England E-mail: [email protected]

Julie A. Soloway Thames Water Fellow of Strategic Management, Templeton College, University of Oxford, Oxford, OXI 5NY, England E-mail: [email protected]

SUMMARY

Under the North American Free Trade Agreement (NAFTA), domestic environmental regulations can have the ultimate impact of erecting entry barriers against foreign companies. These actions by domestic firms are part of a corporate “shelter”-seeking strategy. Five recent cases are analyzed out of twenty-four environmental disputes relevant to NAFTA.

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Corporate Strategy and NAFTA When Environmental Regulations Are Barriers to Trade

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