Toward a North American Community: Lessons from the Old World for the New
Because of Pastor's links to previous Democratic administrations, the sensible proposals outlined here are not likely to find a receptive ear in the current White House. That would be a pity. This comprehensive account of NAFTA since its implementation in 1994 concludes that integration's rapid pace demands more concrete policy responses from Mexico, the United States, and Canada. Specifically, Pastor sees a need for both a "widening" and a "deepening" of NAFTA. "Widening" requires enlarging the market to permit larger economies of scale -- i.e., a Free Trade Area of the Americas (FTAA). "Deepening" involves reducing internal trade barriers and distortions -- a more complicated task because it runs up against domestic politics and national identity. He then proposes a "North American Commission" of distinguished individuals appointed by the three NAFTA governments -- but who are not in government -- to formulate a comprehensive agenda. This approach would include a far-ranging plan for transportation and infrastructure (funded initially by the World Bank and the Inter-American Development Bank) and better management of cross-border flows of people, arms, and drugs. It would also create a development fund targeted at North America's poorest regions, just as the European Union has done for its poorer members. Despite the political difficulty of these initiatives, Pastor concludes, they are essential to the continent's future; as he correctly points out, "a problem in one part of North America can no longer be contained from affecting other parts."
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With so many players involved, the eagerly anticipated Free Trade Area of the Americas is likely to wind up a shallow project. A better way to jump-start hemispheric integration would be to expand NAFTA to the Southern Cone -- enhancing prosperity, security, and democracy throughout South America.
California is the most populous state in the United States. Its gross economic product is seventh in the world, well ahead of China or Canada. Given its massive size and the fact that the export-driven sector is the only part of its economy that shows any potential for long-term growth, California is increasingly adopting its own foreign policy. In turn international economic trends are having strong regional effects from San Diego to San Francisco. At the center of this new interdependence lies the North American Free Trade Agreement and the pivotal bilateral tie between Mexico and California.
The Salinas regime has ardently pursued the North American Free Trade Agreement as a silver bullet to kill myriad political and economic problems. But NAFTA as it stands would exacerbate many of Mexico's enduring disparities and injustices. Short term adjustment costs and the possibility of backsliding on political reform have largely been overlooked. NAFTA must be designed to contribute to political reform. Otherwise, postponing the accord would not weaken Mexico-only Salinas.

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