NAFTA's Impact on Business Environmental Decision Making

Signing the North American Free Trade Agreement (NAFTA) liberalized trade policy and reduced tariffs between Mexico, the United States, and Canada, but activists opposed to the treaty predicted an environmental disaster. This article seeks to analyze the dynamics of environmental spending and changes in companies' profiles following NAFTA. Our results suggest that these predictions have not come true. Through an econometric model, we explore how 2,438 industries in the 1994–2002 period made environmental decisions and how much they spent on cleanup. Estimates were made with a dynamic panel model using the generalized method of moments (GMM) method. Our results suggest that environmental investment decisions depended on business size, their technological capabilities, sales performance, and the need to comply with the standards required by customers in the international market. The last section explores policies to improve compliance with Mexico's environmental regulations and to develop sustainable, eco‐friendly manufacturing.     

Canada’s cultural exemption

ABSTRACT

Certain countries stand out as having distinctive approaches to trade and culture. Canada occupies a key position in this pantheon of distinctive approaches. Since the 1980s, Canada has pursued a 'cultural exemption’ in its various trade agreements. The perception is that it has largely maintained this exemption, however I will show in this article that each iteration of the exemption differs from the others in subtle but noteworthy ways. These differences stem in large part from the nature of the particular trade agreement negotiations and the identity of the specific trading partner(s). Ultimately, the aim of this contribution is to show that Canada’s cultural exemption strategy has had to evolve alongside key trends in trade, notably the proliferation of free trade agreements.     

北美自由贸易协定与美墨关系

北美自由贸易协定(NAFTA)的签定是冷战结束后美墨关系发生变化的一个重要标志,是经济全球化过程中的重要发展趋势。美、加、墨通过建立经济合作关系,实行经济自由化、一体化,既有利于三国经济的互利合作,又促进墨西哥的政治经济体制改革,为墨西哥对外经济开放、发展外向型经济提供机遇。但美墨之间由于历史遗留问题以及墨西哥国内依然存在的强烈民族主义倾向,墨西哥经济对美国经济的过分依赖等,使美墨关系还存在不确定的变数。由于墨西哥积极发展与亚太地区和欧盟的经济合作关系,未来美墨关系的发展,以及建立北美自由贸易区统一货币等问题,是对NAFTA的一个严峻考验。     

Environmental Performance of the Assembly Plants Industry in the North of Mexico

The northern border of Mexico, a region with great tradition and rooting of the assembly plants industry, outstands by its specialization in the processing of electronic products and automobile parts. Also, this industry outstands by restructuring its techno‐productive capabilities derived from its integration with North America, which has aroused the interest about the resulting environmental problems. As depository of direct foreign investment, this region demands to design efficient mechanisms for an environmental management actively involving all the local actors. The deepness of liberalization of the Mexican economy has not been a condition for Mexico to specialize itself in “dirty” industries because since the North America Free Trade Agreement has taken effect, it is favoring less polluting industries as this is compliant of the environmental regulations, which are determined by the cooperation among companies and government through inspection and promotion of voluntary self‐management programs and through the environmental policy imposed by the corporation to its affiliates by means of quality and environmental international certifications (ISO 9001, 9002, 14001, and 14002). The objective of this work is to analyze the environmental performance of foreign companies operating under the assembly plants industry regime, considering the relationship between industrial upgrading and environmental performance.     

United States–Mexico: The Convergence of Public Policy Views in the Post‐9/11 World

This article explores the state of public policy preferences between the United States and Mexico in the realm of foreign policy in the context of the post‐9/11 world, democratic change within Mexico, and the immigration protests within the United States. Specifically, we will analyze the differences and possible convergence of public policy views on the issues of terrorism, immigration, free trade agreements, drug trafficking, and foreign policy. We find that although there are differences of opinion, particularly in the application of force in Iraq and on the benefits of free trade, there still remains a significant degree of positive convergence within the policy issues of terrorism, immigration, and drug trafficking. Although there are institutional impediments to progressive policy change, future relations between the United States and Mexico do not need to be contentious as long as the focus is on the similarities, rather than the differences, in public preferences between the populations of the two states.     

A Geospatial Analysis of China's Exports, 1991-2008

Three Taiwan-based economists employ a range of exploratory spatial data analysis tools (e.g., Moran's I and LISA statistics) to investigate trends in the growth of China's exports over the period 1991-2008. A particular focus is on the detection of spatial correlations between China and 40 export destination countries in major world regions. Emphasis in the paper on the key years of 1991, 2001, 2006, and 2008 has enabled the authors to analyze the impacts on China's trade of such major events as the country's accession to the World Trade Organization and the global economic crisis of 2008-2009. The results of the spatial analysis reveal the continuing importance of the U.S. and Asian countries in China's export trade (despite changes in the character of trade relations) and identify the spatial outliers (e.g., in Latin America) that may serve as the basis for new export markets for China in the future.     

NAFTA on the Brain: Why Creeping Integration Has Always Worked Better

This paper argues that since the completion of the NAFTA in the early 1990s, there has been too much focus on what governments in Ottawa, Washington, and Mexico City have or have not been doing to deepen North American integration. The NAFTA was an anomaly that obscures the larger history of incrementalism that has shaped North America's political economy. A focus on large, government-led integration projects like the NAFTA as a model for North American integration distracts from an examination of the many connections and processes taking place across borders every day. Security has become fully entrenched as a driving paradigm of North American relations. However, much of the activity in this domain and others is taking place at the bureaucratic, sub-state, and non-state levels rather than via active direction from national leadership. As scholars and analysts of North America, we would do well to move away from the NAFTA as a model for negotiating North America's future.     

The Softwood Lumber Dispute and US Allegations of Improper NAFTA Panel Review

The dispute over Canadian exports of softwood lumber products to the United States (US) has lasted since 1982 and, so far, has gone through four episodes of litigation. In Lumber IV, the US International Trade Commission (ITC) determined that the US softwood lumber industry was threatened with material injury by reason of dumped and subsidized lumber from Canada. Under the North American Free Trade Agreement (NAFTA), a binational panel concluded, however, that there was no such evidence and directed the ITC to reverse its finding. In its resort to the Extraordinary Challenge Procedure, the US alleged that the injury panel had misapplied the US standard of review. In fact, allegations of improper NAFTA panel review were used by the US in order to justify its non-compliance with adverse binding decisions.     

Canada–Mexico Relations: Interdependence,Shared Values … and the Limits of Cooperation

This article offers a historical overview of the evolution of the relationship between Canada and Mexico, emphasizing its exiguity, its fundamental economic nature and the consequences of sharing borders with the United States. It is organized as follows: the first section covers the period going from the establishment of diplomatic relations in 1944 to the late 1960s, a period during which the bilateral relation failed to consolidate despite sporadic efforts; the second section deals with the period starting with the convergence of political visions in the two capitals in the early 1970s up to the period immediately preceding the starting of the negotiations leading to NAFTA. The period during which the most significant engagement between the two countries has taken place to the present is reviewed in the third section. The article concludes presenting some thoughts on the possibilities and limits of cooperation between the two countries.