The North American Free Trade Agreement

Click to increase image sizeClick to decrease image size Notes Mana Charen, 'Oooh, the New Politics', Real Clear Politics. com, http://www.realclearpolitics.com/articles/2008/06/oooh_the_new_politics.html (accessed 20 June 2008). TradeStats Express, International Trade Administration, Foreign Trade Division, US Centre Bureau, US Department of Commerce, available from http://tse.export.gov/MapFrameset.aspx?MapPage=NTDMapDisplay.aspx&UniqueURL=pbstck551vkuf2mr2kzw0q55-2008-5-10-17-37-33 (accessed 7 July 2008). Carol Wise, 'Unfulfilled Promise: Economic Convergence under NAFTA', in Isabel Studer & Carol Wise (eds), Requiem or Revival? The Promise of North American Integration (Brookings, 2007), pp. 38–9. Some examples of this genre are: Bill Gertz, The China Threat: How the People's Republic Targets America (Regnery, 2002); Constantine Menges, China: The Gathering Threat (Thomas Nelson, 2005); and Chi Lo, Phantom of the China Economic Threat (Palgrave Macmillan, 2006). For more on this see Morris Goldstein & Nicholas R. Lardy (eds), Debating China's Exchange Rate Policy (Peterson Institute for International Economics, 2008). Maxwell A. Cameron & Brian W. Tomlin, The Making of NAFTA: How the Deal was Done (Cornell University Press, 2000), pp. 61–3. Manuel Pastor & Carol Wise, 'The Origins and Sustainability of Mexico's Free Trade Policy', International Organization, Vol. 48, No. 3 (1994), pp. 459–89. Robert Z. Lawrence, Regionalism, Multilateralism, and Deeper Integration (Brookings, 1996). Irving M. Destler, American Trade Politics, 4th edn (Institute for International Economics, 2005), p. 208. See Gary Clyde Hufbauer & Jeffrey J. Schott, NAFTA Revisited: Achievements and Challenges (Institute for International Economics, 2005), ch. 1. In order to qualify for NAFTA's preferences, goods have to: (1) be produced entirely within the NAFTA bloc; (2) incorporate only those non-NAFTA materials that are sufficiently processed in North America to qualify for a tariff reclassification; and (3) satisfy a minimum-content rule. Parts of this section draw on Carol Wise, 'Introduction: NAFTA, Mexico, and the Western Hemisphere', in Carol Wise (ed.), The Post-NAFTA Political Economy: Mexico and the Western Hemisphere (Pennsylvania State University Press, 1998), pp. 1–37. Roberto Bouzas & Jaime Ros, 'The North–South Variety of Economic Integration', in Roberto Bouzas & Jaime Ros (eds), Economic Integration in the Western Hemisphere (University of Notre Dame Press, 1994), pp. 7–12. Maxwell Cameron & Carol Wise, 'The Political Impact of NAFTA on Mexico: Reflections on the Political Economy of Democratization', Canadian Journal of Political Science, Vol. 37, No. 2 (2004), pp. 301–23. Destler, American Trade Politics, pp. 11–2. Jagdish Bhagwati, Termites in the Trading System (Oxford University Press, 2008). Hufbauer & Schott, NAFTA Revisited, chs 2 & 3. Formerly known as the 'fast-track' legislation, Trade Promotion Authority (or TPA) is granted to the executive by the congress. Once a trade agreement is negotiated with a foreign partner, the executive sends it to congress for an 'up or down' vote, i.e. legislators are not given the opportunity to further amend or modify the bill. Parts of this section borrow from Carol Wise, 'The US Competitive Liberalization Strategy: Canada's Policy Options', in Jean Daudelin & Daniel Schwanen (eds), Canada among Nations 2007: What Room for Maneuver? (McGill-Queen's University Press, 2008), pp. 225–47, and Wise, 'Unfulfilled Promise'. Robert Pastor, 'The Future of North America', Foreign Affairs, Vol. 87, No. 4 (2008), p. 85. Bouzas & Ros, 'The North–South Variety', pp. 7–12. Kerry Chase, 'Economic Arrangements and Regional Trading Arrangements,' International Organization, Vol. 57, No. 1 (2003), p. 141. See, for example, Jeffrey Sachs & Andrew Warner, Economic Convergence and Economic Policies, National Bureau of Economic Research, Working Paper 5039, 1995. Paul Mosley, 'Globalisation, Economic Policy, and Convergence', World Economy, Vol. 23, No. 5 (2000), pp. 613–34, and Robert Wade, 'Is Globalization Reducing Poverty and Inequality?' World Development, Vol. 32, No. 4 (April 2004), pp. 567–89. Chase, 'Economic Arrangements'. On Mexico, see Daniel Lederman, William F. Mahoney & Luis Servén, Lessons from NAFTA (World Bank and Stanford University Press, 2005), ch. 6; on Canada, see Roger Martin's January 2005 presentation at the World Economic Forum, available at: http://www.competeprosper.ca/images/uploads/davos5.pdf (accessed 22 July 2007). José Ignacio Martínez Cortes & Omar Neme Castillo, 'La ventaja comparativa de China y México en el mercado estadounidense', Comercio Exterior, Vol. 54, No. 6 (2004), pp. 516–28. Peter Howitt, 'Innovation, Competition, and Growth: A Schumpeterian Perspective on Canada's Economy', Commentary, No. 244, C. D. Howe Institute, Toronto, (April 2007). Isabel Studer, 'Obstacles to Integration: NAFTA's Institutional Weakness', in Studer & Wise (eds), Requiem or Revival?, pp. 53–75. Pastor, 'The Future of North America', p. 87. See Stephen Clarkson, 'Maneuvering within the Continental Constitution: Autonomy and Capacity within the Security and Prosperity Partnership of North America', in Jean Daudelin & Daniel Schwanen (eds), Canada among Nations 2007, pp. 248–67. Pastor, 'The Future of North America', p. 87. Elaine Stables, 'Border Fence Construction Not Moving Fast Enough for Rep Hunter', The New York Times, 11 July 2007. Nicola Phillips, Consequences of an Emerging China: Is Development Space Disappearing for Latin America and the Caribbean?, Centre for International Governance Innovation Working Paper No. 14, Waterloo, Ontario, Canada, January 2007; Javier Santiso (ed.), The Visible Hand of China in Latin America (OECD, 2007); and Carol Wise & Cintia Quiliconi, 'China's Surge in Latin American Markets: Policy Challenges and Responses', Politics and Policy, Vol. 35, No. 3 (2007), pp. 410–38. R. Evan Ellis, China and Latin America (Lynne Rienner, 2009), ch. 6. 'Nafta-Plus', The Wall Street Journal, 20 October 2008, p. A18. World Bank, Doing Business in Mexico in 2009 (Oxford University Press and World Bank, 2009). Lederman et al., Lessons from NAFTA, p. 2.

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