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By Gary Clyde Hufbauer

NAFTA entered into strength in 1994 after a sour Congressional debate. yet NAFTA in operation has proved no much less arguable than NAFTA prior to ratification, for either supporters and competitors of exchange liberalization have mentioned adventure with the contract to justify their positions. to supply a actual foundation for this ongoing debate, the authors overview NAFTA?€™s functionality over the 1st seven years, evaluating genuine event with either the targets of the agreement?€™s supporters and the fees of its critics. They then learn destiny demanding situations and possibilities within the alternate and funding relationships one of the 3 associate international locations and the wider implications for brand new exchange tasks during the hemisphere.

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Extra resources for NAFTA Revisited: Achievements and Challenges (Institute for International Economics) (Institute for International Economics)

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37. gov (accessed on March 15, 2005). com 19 01--Ch. gov (accessed on March 15, 2005). Phaseout periods of up to 10 years were granted to give the Mexican in­ dustry (including foreign-owned assembly plants) time to adjust. The growth in auto trade owes both to Mexican domestic reforms and NAFTA liberalization. 39 Much of the trade increase can be attributed to specialization, as 38. A unit is a passenger car, truck (light or medium/heavy), or a bus. Light trucks have ac­ counted for most of the production increase in Mexico.

4 Source: BEA (2004a, table 2). 48 The dispute settlement panel ruled substantially in favor of the United States in April 2004, and Mexico chose not to ap­ peal. The Mexican government agreed to revise its law to comply with the panel recommendations by 2005. The new rules should benefit US carri­ ers routing calls into Mexico as well as the affiliates of AT&T and MCI op­ erating in Mexico. One of the major sticking points of NAFTA implementation has been the liberalization of cross-border trucking.

Delays are endemic on both the US-Mexico and US-Canada borders, due both to in­ creased security measures and the dramatic increase in trade that came with NAFTA. McGuinty worries that “Border delays are making Ontario industry increasingly uncom­ petitive . . [and] function as a quasi-tariff on Ontario goods and services heading south” (see “Wheels of Trade Seize Up at World’s Busiest Border,” Financial Times, August 3, 2004, 3; and BNA 2004). com 17 01--Ch. ” Against these yardsticks, we find that NAFTA has been largely, but not to­ tally, successful.

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