Protection of coastal trade is contrary to the overall liberalized trade
intentions of the CUSTA and NAFTA. In the NAFTA negotiations, the
Canadian shipping industry hoped to get the U.S. to agree to a waiver
system (like that which exists in Canada to allow a foreign flag ship if
no suitable Canadian one is available) and to remove the ownership
provisions. The U.S. rejected this request because it did not want to
open maritime transport services to the dispute resolution process
that was being set up under the NAFTA, and sought to maintain its ability to engage in retaliatory action under its Foreign Shipping Practices
Act of 1988 (Brooks, 2006)