US President Donald Trump announced Aug. 27 that the US and Mexico have reached an agreement on a new trade deal called the United States-Mexico Trade Agreement, which will ultimately terminate the North American Free Trade Agreement (NAFTA). While sitting at the resolute desk, Trump called Mexican President Enrique Peña Nieto to announce the new pact, which Trump described as "a really good deal for both countries [and] something that is very special for our manufacturers and farmers." Among a number of changes to NAFTA, both parties agreed to a provision that would require a significant portion of vehicles to be made in high-wage factories, a measure aimed to discourage factory jobs from leaving the US. Peña Nieto agreed with Trump while on speaker phone, stating, "I think this is something very positive for the United States and Mexico." The Mexican president further stated that he wanted Canada to be involved in the agreement.

In what the New York Times somewhat hyperbolically calls a "clash," US Border Patrol vessels have over the past two weeks stopped at least 10 Canadian fishing boats near Machias Seal Island between Maine and New Brunswick. Canada has responded by beefing up its Coast Guard patrols in what is being termed a "disputed gray zone" between the two countries' territories. "There is no illegal immigration going on there," a bewildered Canadian fisherman told the Times. "It seems silly." Most observers see it as related to the current bitter trade dispute between Washington and Ottawa. The Canadian Broadcasting Corporation says the US Border Patrol has stopped over 20 Canadian vessels so far this year in "contested waters" in the Bay of Fundy, and "has no intention of stopping." The so-called Grey Zone consists of some 700 square kilometers of lucrative lobster waters where the Bay of Fundy meets the Gulf of Maine, although few actually live in it. Machias Seal Island is a migratory bird sanctuary maintained by the government of Canada, but is otherwise uninhabited.

In a setback to Chevron's effort to evade a $9.5 billion liability owed to rainforest communities, Canada's Assembly of First Nations (AFN) and Ecuadoran indigenous leaders signed a protocol Dec. 6 to hold the corporation accountable for dumping billions of gallons of toxic oil waste and for ongoing violations of indigenous rights. The agreement was signed at the AFN Special Chiefs Assembly in Ottawa. AFN National Chief Perry Bellegarde signed the protocol along with Jamie Vargas, president of Ecuador's indigenous federation, CONAIE, and Carmen Cartuche, president of the Front for the Defense of the Amazon (FDA), the community-based organization in Ecuador's Amazon region that brought an historic lawsuit against Chevron on behalf of indigenous and campesino communities. The agreement is supported by a resolution passed unanimously by the Chiefs-in-Assembly.

As "NAFTA 2.0" negotiations open, a provision that essentially locks in Canada's current levels of oil exports to the US is drawing opposition from unlikely allies across the Canadian political spectrum but winning staunch support in the "Oil Patch," as the country's petroleum industry is colloquially called.  The "proportionality clause" originally appeared in the US-Canada Free Trade Agreement of 1988 and became a major issue in that year's national election that returned Prime Minister Brian Mulroney to office. It was replicated six years later in the North American Free Trade Agreement—although Mexico won an exemption. The clause can be invoked if a government in Canada reduces US access to Canadian oil, natural gas, coal, electricity or refined petroleum products without a corresponding reduction in domestic access to those resources.

The Supreme Court of Canada ruled unanimously July 26 in favor of the Inuit community of Clyde River, Nunavut, which has for the past three years fought to stop seismic testing in their Arctic waters. The Court found that the Inuit were not properly consulted on the oil exploration project off Baffin Island. The decision nullified a five-year seismic testing permit issued by the National Energy Board (NEB) in 2014. The justices wrote that the NEB's consultation process with the community was "significantly flawed," paying little respect to the aboriginal rights of the Inuit and their reliance on local marine mammals for subsistence.

London's High Court of Justice ruled (PDF) July 10 that the UK can continue to export arms to Saudi Arabia. The Campaign Against Arms Trade (CAAT) brought the suit on the grounds that the weapons have been used to violate international humanitarian and rights laws. For the last two years, Saudi Arabia has been waging attacks on Yemen, causing the deaths of over 10,000 civilians. Several advocacy groups, including Amnesty International and Human Rights Watch, intervened in the suit. The court looked at a range of evidence, including secret information that was not released to the public due to security concerns. A substantial portion of Lord Justice Burnett's reasoning is contained in a "closed judgment" document that is only available to the government's legal team and a security-cleared "special advocate" for CAAT.

The Canadian Minister of Foreign Affairs Chrystia Freeland and Minister of Public Safety and Emergency Preparedness Ralph Goodale issued a joint statement on July 7 apologizing to former Guantánamo detainee Omar Khadr for violating his rights under the Canadian Charter of Rights and Freedoms. Freeland and Goodale's statement read:

US Secretary of State Rex Tillerson on May 11 signed the Fairbanks Declaration, affirming the neeed for protection of the Arctic's climate. The move, at the 10th Arctic Council Ministerial Meeting held in the Alaska city, came after much speculation that the US would decline to sign, or even use the occasion to announce its withdrawal from the Paris Agreement. The Fairbanks Declaration notes the importance of the Paris Agreement, while stating that "the Arctic is warming at more than twice the rate of the global average." The US getting on board was apparently the fruit of behind-the-scenes diplomatic pressure. "I think we were able to push the US back as much as possible," Rene Solderman, Finland's senior adviser on Arctic affairs, told reporters after the ministerial session.