The Next Phase of North American
Integration. NAFTA to be Swallowed up by the Trans-Pacific Partnership (TPP)?
In preparation for
the upcoming North American Leaders Summit which (was) held in Toluca, Mexico
on February 19, U.S. Secretary of State John Kerry … held a meeting with
his Canadian and Mexican counterparts. Over the last number of years, not
as much attention has been given to the trilateral relationship. Instead,
the U.S. has essentially pursued a dual-bilateral approach with both Canada
and Mexico on key issues including border and continental perimeter security,
as well as regulatory and energy cooperation. On the heels of its 20th
anniversary, there once again appears to be renewed interest in broadening
and deepening the NAFTA partnership as part of the
next phase of North American integration.
On January 17, U.S.
Secretary of State John Kerry hosted the North American Ministerial
with Canadian Foreign Minister John Baird and Mexican Foreign Secretary
Jose Antonio Meade. The discussions centered around topics such as regulatory,
energy and trade relations, along with border infrastructure and management.
The meeting was used to lay the groundwork for next month’s North American
Leaders Summit which will include the participation of U.S. President
Barack Obama, Canadian Prime Minister Stephen Harper and Mexican President
Enrique Pena Nieto.
During a press conference,
a reporter asked about reopening NAFTA in order to update it.
Secretary Kerry answered, “the TPP, is a very critical component
of sort of moving to the next tier, post-NAFTA. So I don’t think you have to
open up NAFTA, per se, in order to achieve what we’re trying to
achieve.” Minister Baird added, “we believe that NAFTA’s
been an unqualified success, the Trans-Pacific Partnership (TPP)
trade negotiations, which all three of us are in, offer us the opportunity
to strengthen the trilateral partnership.” Secretary Meade also chimed
in, “We do not think it is necessary to reopen NAFTA,
but we think we have to build on it to construct and revitalize the idea of
a dynamic North America.”
In December 2013,
the Miami Herald reported that the Obama administration, “is exploring a
regional trade plan for the Americas that would be the most ambitious hemispheric
initiative in years.” It went on to say that Secretary of State John Kerry,
“would like to first seek an agreement to deepen the existing North American
Free Trade Agreement (NAFTA) with Mexico and Canada, and to
expand it afterward to the rest of Latin America.” According to some of
Kerry’s top aides, “the plan to relaunch NAFTA
could come as early as February, when President Barack Obama is scheduled
to meet with his Mexican and Canadian counterparts at a North American
Leaders’ Summit in Mexico.” The recent article, U.S. lays out goals for NAFTA
cautioned that, “the shared goal of a NAFTA
2.0 that wins fresh, sustainable gains for Canada, Mexico and the U.S., the
Americans warn, is unlikely to come in a single, dramatic and easily
digestible sound byte.” It further noted that, “Instead, the Americans are
urging a more realistic approach aimed at reviving trilateral momentum,
with a dogged diplomatic effort that aggressively fine-tunes, streamlines
and expands the trade pact.”
Last year, business
leaders from across North America released a set of policy recommendations
designed to increase continental economic integration and competitiveness.
In a letter issued to President Barack Obama, Prime Minister Stephen
Harper and President Enrique Pena Nieto, the Business Roundtable, the Canadian
Council of Chief Executives and the Consejo Mexicano de Hombres de Negocios
called for greater trilateral government action in the areas of intelligent
border systems, regulatory standards and practices, as well as North
American energy security and sustainability. The business organizations
explained that, “More can and should be done to promote regulatory cooperation
between our three countries, to facilitate the legitimate movement of people,
goods and services.” They emphasized that the time to act was now and that
their specific proposals would, “help deepen our economic ties, strengthen
the international competitiveness of Canadian, Mexican, and U.S. companies
and their workers, and realize North American energy self-reliance.” Their
goal is to create a seamless North American market.
At the third annual
North American Competitiveness and Innovation Conference in October
2013, government officials, trade experts and leaders representing the
private and academic sectors from all three countries gathered to discuss
strategies aimed at boosting NAFTA ties. Among the attendees
were U.S. Secretary of Commerce Penny Pritzker, Canadian Minister of
International Trade Edward Fast, and Mexican Secretary of Economy Ildefonso
Guajardo. In a joint statement, they agreed to strengthen their trade and economic
relationship. The ministers, “committed to crafting a roadmap that both
promotes prosperity across the NAFTA region for the next 20
years and maintains our position as the most competitive region in the
world.” They also pledged to enhance, “regulatory cooperation, and coordinated
efforts to facilitate increased trade through many initiatives, including
the ongoing Trans-Pacific Partnership (TPP)
negotiations.” With NAFTA as the foundation, the U.S.,
Canada and Mexico are working towards taking their trilateral partnership
to the next level.
In the report North
American Competitiveness: The San Diego Agenda, Laura Dawson, Christopher
Sands, and Duncan Wood examine the evolution of the NAFTA
and provide a blueprint for deepening trilateral integration. This
includes a host of recommendations dealing with harmonized regional
trade policy, regulatory alignment, border and infrastructure, as well
as human capital and energy. As far as a regulatory strategy goes, the
paper called for the U.S.-Canada Regulatory Cooperation Council and the
U.S.-Mexico High-Level Regulatory Cooperation Council to be coordinated
within a trilateral framework. In the area of border security and efficiency,
it also recommended that Mexico be included in the U.S.-Canada Beyond the
Border initiative.
The report stated
that, “North America’s future demands deeper integration of our economies and
streamlined cross-border processes. Essential elements in ensuring
long-term competitiveness include infrastructure spending, energy cooperation,
investing in human capital formation, increasing labor mobility and
labor market flexibility, regulatory cooperation and more efficient
border management.”
When it comes to further
advancing North American integration, the extensive policy paper reinforced
the message that, “Trilateralism is about the long game. Bilateralism
may move faster but cannot move as far.” It also stressed now that, “NAFTA
has been institutionalized, it is sustained by working-level incrementalism,
and its benefits are eroding. It is time for a new leap of faith.”
With respects to a
shared North American Vision, Laura Dawson described how, “A window of
opportunity for important policy change is rare and actions involving multiple
governments, interests and stakeholders are difficult. I am convinced
that it is time for action and that it will be a long while before there is a
similar convergence of opportunity and interest.” The report that Dawson
helped put together concluded that, “the biggest impediment to progress is a
lack of political leadership.” That is why many who are pushing this
agenda are hoping that the upcoming North American Leaders Summit will
help revive the NAFTA spirit and be used as launching
pad for greater trilateral collaboration.
After 20 years of NAFTA,
there is a growing sense from proponents of the deal that the time is right
to take new steps towards North American economic integration. Beyond all
those who view NAFTA as a success, there is a dark
side and a legacy of broken promises. When NAFTA
was introduced, it represented the architecture for a new international
system. It became the template for future trade agreements which have been
used to promote even greater corporate control. The TPP
negotiations which are currently underway would expand the failed NAFTA
model to even more countries. Furthermore, with the U.S., Canada and Mexico
all a part of the massive trade talks, it also provides an opportunity to
upgrade NAFTA without having to reopen it.
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CommentsThe UN puppet, global Marxist totalitarian communist government Obama is ushering in place requires the court system they will get under the Trans-Pacific Partnership and a military they will largely get from the U.S. and its NATO allies. If this isn’t stopped our national sovereignty will be toast. The new world communism approach doesn’t require that countries be dissolved through revolution. It just requires that countries be absorbed. If we quit the U.N. all of this would just go away. We have everything to lose.Norb Leahy, Dunwoody GA Tea Party Leader
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