Canada: International Law

The collapse of Canada-U.S. trade negotiations in August 2026 has triggered unprecedented tariff measures that may fundamentally alter North American commerce, as Section 338 tariffs potentially apply regardless of CUSMA qualification. Canadian businesses face a critical strategic inflection point where traditional compliance-based approaches may no longer suffice, requiring immediate assessment of manufacturing locations, supply chain geography, and long-term competitiveness in an environment

A recent Alberta court decision provides critical guidance on Canadian sanctions compliance, examining how businesses must assess whether counterparties are controlled by sanctioned entities through voting power, board composition, and governance structures. The case demonstrates that sanctions screening extends far beyond checking names on official lists, requiring deeper analysis of corporate ownership chains and practical control mechanisms.

When Canadian companies operate across borders, complying with one country's sanctions laws can expose them to prosecution in another. This article examines the unique compliance dilemma that arises when Canadian obligations under the Foreign Extraterritorial Measures Act conflict with U.S. sanctions against Cuba, creating a cross-border compliance trap for businesses with American ties.