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Environmental Regulations and Corporate StrategyA NAFTA Perspective$
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Alan Rugman, Julie Soloway, and John Kirton

Print publication date: 1999

Print ISBN-13: 9780198295884

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780198295884.001.0001

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Trade and Environment Institutions: The NAFTA Regime

Trade and Environment Institutions: The NAFTA Regime

(p.74) (p.75) 5 Trade and Environment Institutions: The NAFTA Regime
Environmental Regulations and Corporate Strategy

Alan Rugman

John Kirton

Julie Soloway

Oxford University Press

Through their legally based mechanisms for settling various disputes, trade agreements play no small part in affecting corporate strategic behaviour. NAFTA, because of its provisions, has been able to improve in terms of dispute settlements, since foreign nationals and corporations are enabled to act against government measures for breach of treaty obligation. It is important to note that NAAEC's Articles 14–15 have also allowed firms to correspondingly act over the failure of the government to implement the said regulations. Trade agreements are also capable of avoiding and preventing disputes since these entail institutions and rules for environmental regulation application, the operations of regulatory systems, and establishing the content of the regulations. Companies may be provided with knowledge, not only about foreign regulations, but about how these foreign systems work as well.

Keywords:   legal mechanisms, foreign regulations, NAFTA, strategic behaviour, NAAEC, trade agreements

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