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Negotiating NAFTA

Negotiating NAFTA: Explaining the Outcome in Culture, Textiles, Autos, and Pharmaceuticals

Copyright Date: 2000
Pages: 288
  • Book Info
    Negotiating NAFTA
    Book Description:

    Using case studies in four areas negotiated in the North American Free Trade Agreement, Robert uses a theoretical framework to help explain the outcome of such negotiations in terms of structure and process.

    eISBN: 978-1-4426-7760-9
    Subjects: Business

Table of Contents

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  1. Front Matter
    (pp. i-iv)
  2. Table of Contents
    (pp. v-vi)
  3. Preface
    (pp. vii-viii)
  4. Part One: Theory and History

    • Chapter One Explaining Negotiation Outcomes
      (pp. 3-21)

      International negotiations are an increasingly important fixture of the world trading system. Economic reforms recently implemented by developing countries have led to a substantial increase in the number of free trade agreements negotiated at the bilateral and regional levels. Issues ranging from tariffs and non-tariff barriers to services, intellectual property, investment, and dispute settlement are now covered by these agreements. Markets are, in fact, becoming more integrated throughout the world. As Gilbert Winham observes, ʹNations are negotiating more and more today, but they are doing so less and less to resolve conflicts. The focus instead is on the management of...

    • Chapter Two Towards a North American Free Trade Agreement
      (pp. 22-44)

      When theWall Street Journalreported on 27 March 1990 that representatives of Mexico and the United States had met secretly in February of the same year and agreed to negotiate a bilateral free trade agreement, this came as a surprise to most Mexico watchers.¹ Market-focused and outward-oriented reforms initiated by the Mexicans in mid-1985 had not gone unnoticed, and recent bilateral agreements aimed at improving trade between the two partners had fortified the relationship. But the decision to sign a free trade agreement with the United States meant that Mexicoʹs economic relationship with its northern neighbour had entered a...

  5. Part Two: Four Cases

    • Chapter Three Culture: Preserving the Status Quo
      (pp. 47-95)

      The Canadian and Mexican cultural industries are generally more extensively subsidized, regulated, and protected than their U.S. counterparts. In Canada, protecting cultural industries has always been a matter of the utmost importance for the government. Lacking a unifying culture and sharing a long border and, for the majority of the population, a common language with the United States, Canadians have consistently felt that state intervention was not only justifiable but necessary to increase Canadaʹs cultural resources and build a national identity.

      As early as 1867, the politician and poet Thomas DʹArcy McGee argued that supporting what we now call cultural...

    • Chapter Four Textiles and Apparel: Canada, the Odd Man Out
      (pp. 96-151)

      Textiles and apparel are among the oldest manufacturing industries in the world, ʹwith roots going back to the very beginning of civilization.ʹ¹ They led the industrial revolution to become one of the primary employers in most developed countries. In the United States, one in ten manufacturing workers is still employed by these two sectors. As these industries grew, countries sought to protect themselves against foreign competition. The U.S. Congress enacted its first tariff on cotton and woollen goods in 1816. Mexicoʹs early tariffs in 1821 and 1827 were aimed at shielding the Puebla-based artisan textile industry against imports. In 1829,...

    • Chapter Five The Automotive Sector: Working with the Industry
      (pp. 152-206)

      The automotive sector has become one of the most integrated industries in North America. The Auto Pact of 1965 between Canada and the United States, which marked the first step towards a regional industry, has encouraged rationalization and specialization in the industry and has facilitated modernization of the auto sector in Canada. Automotive decrees by the Mexican government between 1962 and 1989 strengthened the relationship between U.S. and Mexican producers. But it is the opening of several in-bond, or maquila plants in Mexico by U.S. carmakers in the 1980s and the liberalization of the Mexican automotive regulations late in the...

    • Chapter Six The Pharmaceutical Industry: Ending Canadaʹs Compulsory Licensing Regime
      (pp. 207-243)

      The pharmaceutical sector in North America mirrors the world pharmaceutical industry. While resisting the trend towards strong patent protection until the late 1980s, Canada and Mexico have now adopted a patent regime aimed at striking a balance between encouraging innovation via development of new drugs and reducing health care costs through production of generic drugs. The United States, in contrast, the largest producer and consumer of pharmaceutical products in the world, had long before Canada and Mexico espoused the idea of a friendly environment and policy framework for research and development (R&D) spending in pharmaceuticals.

      Canada and Mexico used tariffs...

    • Chapter Seven Conclusion
      (pp. 244-252)

      This book has attempted to provide a theoretical framework to explain the outcome of a negotiation in the field of international trade, using as case studies four issues negotiated in NAFTA. The main argument put forward here is that negotiation outcome has two characteristics: structure and process. Structure is made up of the resources that a state brings to the table in a given issue area. Process, in contrast, refers to the stateʹs behaviour as expressed by its tactics during negotiation. But neither resources nor tactics alone can predict the outcome of a negotiation. The key message conveyed in this...

  6. Notes
    (pp. 253-286)
  7. Index
    (pp. 287-298)