NAFTA Revisited: Achievements and Challenges

Gary Clyde Hufbauer

Peterson Institute, 2005 - Foreign trade and employment - 517 pages

Annotation NAFTA entered into force in 1994 after a bitter Congressional debate. But NAFTA in operation has proved no less controversial than NAFTA before ratification, for both supporters and opponents of trade liberalization have cited experience with the agreement to justify their positions. To provide a factual basis for this ongoing debate, the authors evaluate NAFTA's performance since its inception, comparing actual experience with both the objectives of the agreement's supporters and the charges of its critics. They examine future challenges and opportunities in the trade and investment relationships among the three partner countries and the broader implications for new trade initiatives throughout the hemisphere. Chapter 1 describes trade, investment, and macroeconomic developments under NAFTA, beginning inauspiciouslywith the Mexican economic crisis of 1994 but moving on to impressive growth in trilateral trade and Mexican GDP. Chapter 2 traces the implementation of NAFTA's dispute settlement provisions and the progress to date in implementing reforms. Chapter 3 distills and updates the findings from NAFTA and the Environment: Seven Years Later and recommends how to improve the performance of NAFTA's institutions in addressing environmental problems. Chapter 4 undertakes a similar assessment of the operations of the North American Agreement on Labor Cooperation and the impact of NAFTA on employment and wages in the region. Chapters 5 and 6 examine integration in the North American auto and energy markets. The final chapter looks forward and focuses on the challenges facing North American economic integration on important issues such as immigration, environment, energy, and exchange rates.

Contents

• Overview: 1
• NAFTA in Historical Context: 5
• Assessing NAFTA: 17
• The Bottom Line: 61
• References: 63
• NAFTA and Trade Generation Review of the Literature: 69
• Trends in Mexican Imports since 2000: 73
• Labor: 79
• Facts about Fears: 80
• NAFTAs Labor Provisions: 114
• Labor Adjustment Programs in North America: 129
• Conclusion and Recommendations Reform of the NAALC: 131
• References: 137
• Appendix 2A: 142
• Environment: 153
• NAFTAs Environmental Provisions: 155
• Environmental Policy Trends in North America: 162
• The USMexico Border: 168
• Conclusions and Recommendations: 177
• References: 183
• Appendix 3A: 187
• Dispute Settlement Systems: 199
• Chapter 11: 201
• Chapter 14: 207
• Chapter 19: 210
• Chapter 20: 213
• NAFTA and WTO Dispute Settlement Mechanisms Compared: 215
• Outcome of Dispute Settlement Cases Chapter 11 Cases: 224
• Conclusion and Recommendations: 249
• References: 253
• Appendix 4A: 257
• Agriculture: 283
• Overview of Agricultural Trade in NAFTA Trade and Agriculture: 286
• USCanada Wheat Dispute Types of Wheat Involved: 297
• The Sugar Saga: 310
• The Corn Saga: 328
• Conclusions and Recommendations: 344
• References: 346
• Appendix 5A: 352
• The Automotive Sector: 365
• Policy in the Auto Sector: 366
• North American Auto Trends: 372
• Conclusion: 388
• References: 390
• Appendix 6A: 392
• Energy: 395
• Energy Policies in North America: 396
• MediumTerm Energy Outlook: 407
• NAFTA and Energy Trade: 417
• Recommendations: 426
• References: 437
• MexicoUS Migration: 441
• Postwar Migration Policy: 443
• The Immigration Reform and Control Act of 1986: 446
• Mexican Immigrants and Current Trends: 447
• NAFTA and the Migration Hump: 449
• FormalSector Jobs and Migration: 452
• Managing MexicoUS Migration: 455
• Conclusions and Recommendations: 464
• Recommendations for North American Economic Integration: 467
• PostSeptember 11 Challenges: 469
• Upgrading NAFTA: 472
• Deepening the Trade Bargain: 473
• Going with the Energy Flow: 478
• Controls on Coming and Going: 481
• Where the Buck Stops: 484
• Updating Environment and Labor Provisions: 486
• Strengthening NAFTAs Institutions: 488
• Conclusion: 490
• References: 491
• Acronyms: 493
• Additional Readings: 499
• Index: 503

Bibliographic information

• Title: NAFTA Revisited: Achievements and Challenges
• Author: Gary Clyde Hufbauer
• Publisher: Peterson Institute, 2005
• ISBN: 0881325597, 9780881325591
• Length: 517 pages