CANADA MAY ASK U.S. TO CUT TAX BREAKS TO NHL TEAMS
Canada may ask the U.S. to stop providing tax breaks
for NHL teams "because the incentives may violate the North
American free-trade agreement between" the U.S., Canada and
Mexico, according to a report in the Toronto GLOBE & MAIL.
The purpose of the '94 NAFTA agreement was to prevent any of
the three countries from providing unfair trade incentives.
The Canadian federal government has hired Toronto lawyer
Dennis Mills to examine the issue. Mills will present his
findings to a nine-member government subcommittee in June.
Vivaldo Latoche, a spokesperson for Mills, said the Canadian
government "is serious about this now. The American
government is giving its teams an unfair advantage." An NHL
official said that NAFTA had nothing to do with "team
movement" out of Canada. NHL VP/Legal Affairs Bill Daly:
"With respect to where our franchises are located, and the
subsidies they receive, there is absolutely no impact of
NAFTA on the NHL" (Toronto GLOBE & MAIL, 4/23).