Requiem or Revival?

Requiem or Revival?: The Promise of North American Integration

Isabel Studer
Carol Wise
Copyright Date: 2007
Pages: 306
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  • Book Info
    Requiem or Revival?
    Book Description:

    The North American Free Trade Agreement (NAFTA) was launched amid great hopes and controversy in 1994. More than a dozen years later, progress toward economic integration has stalled. Mexico's economy remains far behind those of Canada and the United States, and such pressing issues as energy security remain unaddressed. In Requiem or Revival? scholars and policymakers from all three nations dissect NAFTA's failure to fulfill its early promise and evaluate the prospects for further integration. The authors explore the interaction between regionalism and multilateralism, the impact of the "new trade" agenda, and NAFTA's unresolved problems -migration, security, and energy. Recognizing the limits of the NAFTA framework, they examine its relationship to the Free Trade Agreement of the Americas negotiations and the Doha Development Round, and they discuss various ways in which NAFTA could be revamped or improved. The result is an intriguing volume offering important insights on the future of economic integration in North America and beyond. Contributors include Chantal Blouin (North-South Institute), Theodore H. Cohn (Simon Fraser University, emeritus), I. M. Destler (University of Maryland), Charles F. Doran (Johns Hopkins University-SAIS), Christina Gabriel (Carleton University), Sergio Gómez Lora (IQOM, Inteligencia Comercial), Jerry Haar (Florida International University), Laura Macdonald (Carleton University), Gordon Mace (Université Laval), Isidro Morales (University of the Americas), Glauco Oliveira (University of Southern California), Antonio Ortiz Mena (CIDE), Jeffrey J. Schott (Peterson Institute for International Economics),Anne Weston (North-South Institute),Tamara Woroby (Towson University, Johns Hopkins University--SAIS), and Jaime Zabludovsky (Soluciones Estratégicas).

    eISBN: 978-0-8157-8200-1
    Subjects: Business

Table of Contents

  1. Front Matter
    (pp. i-iv)
  2. Table of Contents
    (pp. v-vi)
  3. Preface
    (pp. vii-viii)
  4. Acknowledgments
    (pp. ix-x)
    Isabel Studer and Carol Wise
  5. Abbreviations
    (pp. xi-xiv)
  6. 1 No Turning Back: Trade Integration and the New Development Mandate
    (pp. 1-24)

    Since the Uruguay Round of negotiations of the General Agreement on Tariffs and Trade (GATT) in 1986, hemispheric and subregional trade negotiations have proliferated and have interacted with this more established multilateral venue in unpredictable ways. First was the uncharacteristic willingness of the United States to venture outside of GATT in search of bilateral free trade agreements (FTAs). Frustrated with the slow pace of the Uruguay Round, the United States launched bilateral accords with Canada and Israel in the latter part of the 1980s. The Canada-U.S. deal, in turn, invoked Mexico’s request to negotiate a similar bilateral agreement with the...

  7. PART I The North American Free Trade Area:: Achievements and Limitations

    • 2 Unfulfilled Promise: Economic Convergence under NAFTA
      (pp. 27-52)

      It is estimated that around 230 subregional integration schemes have cropped up across Asia, Africa, the Middle East, and the Western Hemisphere since 1990, but this chapter is concerned with one of the more unusual features to have emerged within the current generation of regional trade agreements (RTAs): the sweeping elimination of economic barriers between the less developed countries and the developed countries.¹ Ireland, Greece, Spain, and Portugal made this leap when joining the European Economic Community (EEC) between 1973 and 1986, and Mexico, the focus of this analysis, later followed with its entry into the North American Free Trade...

    • 3 Obstacles to Integration: NAFTA’s Institutional Weakness
      (pp. 53-75)

      When he took office in 2000 President Vicente Fox promoted the idea of a deeper integration of North America, one that would include the free transit of not only goods, services, and capital, but also labor. He also proposed establishing a U.S.$20 billion development fund equivalent to Europe’s cohesion funds to invest in, among other things, infrastructure corridors to better connect the North American region. More generally, Fox proposed the European Union process of integration as a model for North America. This approach, also known as NAFTA-plus, was seen by many as the most effective way to mitigate the huge...

    • 4 Trade Negotiations among NAFTA Partners: The Future of North American Economic Integration
      (pp. 76-88)

      North American economic integration long predates the creation of the Canada-U.S. Free Trade Agreement (CUSFTA) and the North American Free Trade Agreement (NAFTA). Several of the authors whose work appears in this volume have contributed importantly to the integration process—some for longer than they would like to admit. But there’s still more work to do to ensure that regional integration achieves its ultimate purpose: to improve the standard of living of all the people in our societies.

      This chapter traverses what has been achieved by building bridges—literally and figuratively—to link the three countries. North American economic integration...

  8. PART II The Hemispheric Context:: From NAFTA to the Free Trade Area of the Americas

    • 5 Beyond the FTAA: Perspectives for Hemispheric Integration
      (pp. 91-107)

      It has been more than ten years since the heads of state of the thirty-four democratically elected governments in the Western Hemisphere launched negotiations for a Free Trade Area of the Americas (FTAA), the most ambitious foreign policy initiative the region has seen in decades. The 1994 Miami Summit of the Americas gave birth to the FTAA concept, raising expectations that the long-standing desire for hemispheric integration seemed possible at last. Since the Miami Summit, significant progress has been achieved, even though macroeconomic problems and political crises have plagued several of the participating countries. Despite the effort of FTAA leaders...

    • 6 The FTAA Stalemate: Implications for Canadian Foreign Policy
      (pp. 108-123)

      The above declaration by the former Canadian minister for international trade attests to the profound disarray concerning the results of the November 2003 Free Trade Area of the Americas (FTAA) Ministerial Meeting held in Miami. Instead of laying the groundwork for the last stretch of a negotiation leading to a comprehensive agreement, this meeting of trade ministers resulted in a significant reorientation of the institutional trajectory of the FTAA. What remained was a seriously watered-down version of the original project. How can we explain Canada’s somewhat dire reaction to this turn of events, especially given Canada’s still low rates of...

    • 7 What Went Wrong? Brazil, the United States, and the FTAA
      (pp. 124-144)

      The failure to meet the deadline to establish a Free Trade Area of the Americas (FTAA) by January 2005 threw this project into limbo and confirmed the lack of common objectives and unresolved rivalries between Brazil and the United States, the two main players at the regional negotiating table. At the heart of this standoff lie the U.S. determination to negotiate new trade themes such as services, investment rules, government procurement, and intellectual property rights and Brazil’s concern with facilitating market access for traded goods, including agriculture, and trade remedy measures (antidumping).

      Underpinning these important substantive differences is considerable discord...

  9. PART III The Global Context:: The New Trade Agenda and the Doha Round

    • 8 The Doha Round: Problems, Challenges, and Prospects
      (pp. 147-165)

      The General Agreement on Tariffs and Trade (GATT) completed the Uruguay Round, its most ambitious round of multilateral trade negotiations, in December 1993. The Uruguay Round resulted in a stronger dispute settlement system, multilateral trade rules for services and intellectual property, more multilateral trade discipline for agriculture and textiles, and the creation of the World Trade Organization (WTO). However, the seven years required to complete the Uruguay Round were an indication of the enormous difficulties that would follow in the first formal WTO negotiating round, the Doha Round. For example, the Uruguay Round designated agriculture and services as built-in agenda...

    • 9 U.S. Trade Politics during the Doha Round
      (pp. 166-185)
      I. M. (“Mac”) Destler

      On July 24, 2006, Pascal Lamy, director-general of the World Trade Organization (WTO), declared the Doha Development Round of global trade talks “suspended” because of the failure of the principal parties to reach agreement on agricultural trade. Then, on November 7, 2006, the domestic political context for U.S. trade was transformed as Democrats won control of the Senate and the House of Representatives in the midterm elections. No longer could President George W. Bush rely on partisan majorities and Republican control of congressional procedures to sustain his trade policy. Thus both abroad and at home, U.S. trade policy was entering...

    • 10 Mexico in the Multilateral Trading System: A Long and Winding Road
      (pp. 186-208)

      In the two decades since Mexico joined the General Agreement on Tariffs and Trade (GATT), it has become an important trader in Latin America, participates actively in multilateral trade negotiations, and has been one of the most dynamic participants in regional trade agreements. Currently, more than 70 percent of the country’s GDP derives from trade.¹ The present situation stands in stark contrast to Mexico’s trade practices of relatively recent times. In 1982 it still had a closed economy and delayed joining GATT until 1986. Even in 1980, during the oil price boom, its exports amounted to only U.S.$33 billion, compared...

  10. PART IV Beyond Trade:: Energy, Migration, and North American Integration

    • 11 The Politics of Energy Markets in North America: Challenges and Prospects for a Continental Partnership
      (pp. 211-231)

      With global energy prices reaching new heights since 2000, the United States has turned its attention more closely to the prospects for forging an explicit and cohesive energy policy that involves Canada and Mexico. The U.S. energy strategy up until now has bet on market mechanisms and blind faith that price incentives for Canada and Mexico will encourage the development of their unconventional and conventional resources in order to maintain the flow of energy supplies to the U.S. market. Although there is no consensus in North America on how to proceed with a continental strategy that pools the benefits and...

    • 12 International Energy Security and North America
      (pp. 232-246)

      A tendency exists among analysts of international relations to believe that an international energy crisis cannot occur through a supply disruption because such a crisis has not happened before—or at least has not happened recently. But such logic concerning the long term—namely, that oil exporters must sell their oil and therefore are not likely to disrupt supply—could in the short term break down under certain political and economic circumstances. Common wisdom holds that those who could disrupt supply, and thereby trigger a crisis, will not do so. This is because supplier countries rely heavily on the revenue...

    • 13 North American Immigration: The Search for Positive-Sum Returns
      (pp. 247-266)

      The 1994 North American Free Trade Agreement (NAFTA) was mainly about the free flow of goods and services among the three signatories and, with the exception of visas for a limited group of professionals, did not address migration issues. Since that time, the number of people crossing Mexican, Canadian, and especially U.S. borders has increased, creating in the minds of some a causal link between trade liberalization under NAFTA and increased migration flows. In the midst of this, academics and policymakers have contemplated the deepening of NAFTA, a process that could in theory include the creation of a North American...

    • 14 Migration and Citizenship Rights in a New North American Space
      (pp. 267-288)

      Street protests across the United States and tense debates in the U.S. Congress have brought to the fore one of the unresolved issues of North American integration: migration. Proponents of the North American Free Trade Agreement (NAFTA) argued that by bringing wealth and jobs to Mexico, NAFTA would stem the flow of undocumented workers to the United States. Migration was therefore largely left out of the NAFTA agreement. However, Mexicans have continued to travel to the United States in large numbers and under increasingly dangerous conditions, despite U.S. attempts to police its border with Mexico. Migration has thus become a...

  11. Contributors
    (pp. 289-294)
  12. Index
    (pp. 295-306)