Rail Mergers, Trade, and Federal Regulation in the United States and Canada

Federal rail regulation in the United States and Canada is stronglycentralized. The Burlington Northern Santa Fe and the CanadianNational railways' 1999 merger application called the existingrules into question. In the United States, the Surface TransportationBoard ordered a 15–month moratorium and produced stricterrules. In Canada, the BNSF/CN application coincided with a majorreview of federal transportation policy. Among the recommendationswas a new merger review process. This article surveys the relevantlegislation, the effects of NAFTA on rail traffic, conflictsbetween rail carriers and shippers, and the two governments'treatment of market forces. In determinations of the publicinterest, the article concludes, states and provinces are interestedparties among many.