Free Trade between Mexico and the United States?

By Sidney Weintraub | Go to book overview

CHAPTER SIX
Implementing Free Trade

ECONOMIC integration can be formalized in an agreement or can occur in the normal course of events. The Canadian and U.S. economies are more integrated, despite the absence of a comprehensive, formal freetrade agreement, than the economies of the United Kingdom and Germany or even those of France and Germany, which have detailed treaty agreements and an extensive bureaucracy for carrying out the Treaty of Rome among the members of the European Community. Canada in an average year sends about 70 percent of its merchandise exports to the United States. In 1979 more than three-quarters of U.S. imports from Canada entered free of duty.1 The U.S. capital market serves Canada as though the market were Canada's own. Canada's overall economic growth and its monetary policy cannot be determined except in relation to what is happening in the United States. The integration is so thorough from Canada's viewpoint that the suggestion has been considered in a standing committee of the Canadian Senate that a free-trade area between the two countries be declared to exist under the rules of the General Agreement on Tariffs and Trade and then be expanded over time.2 Such a free-trade area would be as real and valid as those among countries of the European Free Trade Association.3

Although the automotive products agreement of 1965 between the

____________________
1
U.S. International Trade Commission (hereafter USITC), Background Study of the Economies and International Trade Patterns of the Countries of North America, Central America and the Caribbean, p. 153.
2
In hearings before the Canadian Standing Senate Committee on Foreign Affairs. See Canadian Parliament, Senate, Canada-United States Relations, vol. 3: Canada's Trade Relations with the United States, pp. 32-34.
3
Intra-EFTA trade in 1979 was between 20 and 23 percent of total EFTA trade. Some of the accomplishments and remaining trade restrictions in EFTA are discussed in European Free Trade Association, EFTA--Past and Future.

-129-

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Free Trade between Mexico and the United States?
Table of contents

Table of contents

  • Title Page iii
  • Foreword vii
  • Author's Preface ix
  • Contents xiii
  • Contents xiv
  • Chapter One Introduction 1
  • Chapter Two The Politics of U.S.-Mexican Trade Integration 13
  • Chapter Three U.S.-Mexican Trade 33
  • Chapter Four Mexican Trade Policy 66
  • Chapter Five Mexico's Development Plans And Strategies 95
  • Chapter Six Implementing Free Trade 129
  • Chapter Seven Questioning the Divergence Theory 154
  • Chapter Eight Summary 172
  • Bibliography 187
  • Index 199
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