This article attempts to assess the difference the Canada-U.S. Free Trade Agreement will make to Canada's interprovincial and international trade in energy sources. It argues that the Agreement is not likely to have a large effect on Canadian energy developments involving exports to the United States. The reason for this is that the Agreement leaves both countries' regulators with substantial power to set terms and conditions on the construction of new or expanded energy transmission systems. These points are illustrated with reference to recent and pending regulatory decisions with respect to Canadian natural gas exports to the American Northeast.
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