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 will evaluate NAFTA's performance over
the first seven years, comparing actual experience with both the
objectives of the agreement's supporters and the charges of its
critics. They will then 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 will describe trade,
investment, and macroeconomic developments under NAFTA, beginning
inauspiciously with the Mexican economic crisis of 1994 but moving
on to impressive growth in trilateral trade and Mexican GDP.
Chapter 2 will trace the implementation of NAFTA's dispute
settlement provisions and the progress to date in implementing
reforms. Chapter 3 will distill and update the findings in the
authors? recent book NAFTA and the Environment: Seven Years Later
(*) and recommend how to improve the performance of NAFTA's
institutions in addressing environmental problems. In Chapter 4 the
authors undertake 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 will
examine integration in the North American auto and energy markets.
The final chapter will look forward and focus on the challenges
facing North American economic integrationon important issues such
as emigration, environment, energy, and exchange rates.
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