NAFTA, US Drought Endanger Canada's Water -Study CANADA: April 4, 2008 OTTAWA - Increasing droughts in the United States and American unhappiness over NAFTA mean Canada could one day be forced to allow bulk shipments of water to its giant neighbour, a left-leaning think tank said on Thursday. The Polaris Institute demanded that Canada pass a law banning the bulk export of water to the United States. Ottawa says such exports are already blocked under the North American Free Trade Agreement, which the two leading US Democratic presidential candidates want to rewrite.