Genial Guppies is a designer of high tech aquarium systems for fish. Their systems promise "aquatic enrichment" for your beloved water bound pet. With all the time people have been spending at home since the pandemic began, the market for Genial Guppies' systems has been growing rapidly in North America. They are expanding into the home turtle market. Please be sure to answer all of questions a) to c) following.

Genial Guppies is considering two possible options to have their fish and new turtle systems manufactured in the Americas, for sale into Canada and the United States. The two possible options are(A)to contract with an existing manufacturer located in Guatemala to manufacture the systems on Guppies' behalf, and to separately contract with a Canadian company to represent Guppies' products for sale in the North American market;or (B)build and operate its own brand new manufacturing facility in Mexico, and sell the products made there to a Mexican company, that would then be responsible for selling them to its own Canadian and American customers as well as making instructional videos on how to enrich your swimming friends' aquatic environment.

---

1. Foroption (A), what trade benefit would Genial Guppies miss out on that option (B) would provide? (1 mark)

2. Focusing onoption (B), if a Canadian company called Dory's Friends Inc., knowing how good Genial Guppies' products are, chose to invest in Genial Guppies' Mexican operation but a dispute subsequently arose between Dory's Friends and Genial Guppies' Mexican affiliate relating to that investment, what legal recourse would Dory's Friends have under NAFTA? Name the relevant part under which Dory's Friends could pursue a remedy, and describe the remedy's possible nature. (2 marks)

3. In light of CUSMA, would the legal recourse and remedy you just described in your answer to question b) still be available to Dory's Friends, if Genial Guppies built its North American operations in the United States instead of Mexico? State yes or no, and explain your answer. (2 marks)