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Email this citationCIAO DATE: 11/03
North American Economic Integration Policy Options
Earl H. Fry
July 2003
Abstract
At the end of 2003, the North American Free Trade Agreement (NAFTA) will have been in effect for a decade, and although the accord will not be fully implemented for another five yea rs, almost all of its important provisions are already in place. The model for NAFTA was the Canada- U.S. Free Trade Agreement (CUSFTA), which was put in motion in 1989 and was to be fully implemented within 10 years but was superseded by NAFTA after only five years in operation. NAFTA itself has created the world's largest free- trade area, encompassing the United States, Mexico, and Canada; 21.3 million square miles of territory; 422 million people; almost $12 trillion in yearly production; and $615 billion in annual three- way merchandise trade. North American trade, investment, government - to- government, and people- to- people exchanges have increased dramatically over the past decade and decisionmakers in Washington, D.C., Mexico City, and Ottawa will soon ha ve to consider whether continental economic integration should move to the next level in the form of a customs and monetary union or even a common market possessing many of the attributes of the European Union (EU).
This paper will discuss what has actually transpired in the North American economy since NAFTA's inception in 1994, examine some of the political and economic linkages that have occurred far beyond the purview of government officials in the three national capitals, and analyze the policy options that may be available to the neighboring member- states during the remainder of the current decade.
