Closing the NAFTA Gap

Abstract

The accession of Ireland, Greece, Spain and Portugal into the European Community was a significant move towards manifesting everlasting peace by means of a single market. The incorporation of these four weaker countries into the European Union (EU) marked a break from the EU’s traditional purview. The paradigm shift of the EU’s approach to enlargement placed Member States onto a path that would harness the full capabilities of a common market in improving civilians quality of life while simultaneously achieving individual Member States’ objectives including growth, employment, and trade. The regional effects of the EU’s single market are drastically different from the effects of the North American Free Trade Agreement (NAFTA). A much newer trading bloc (NAFTA came into effect on January 1, 1994), it lacks the wisdom and fine tuning of the EU. The governments of the United States, Mexico, and Canada signed the treaty1while hailing how it would “fuel economic growth and dynamic trade, stimulate investment while creating productive partnerships, work for small and medium sized businesses and provide fairness and certainty. NAFTA partners promote environmental protection, and provide greater job opportunities in North America”.2 Yet the effects seem to be the exact opposite. NAFTA has been called “one of the most innovative, astounding documents of the 20th century by the stoic…”3, but this so-called “innovative depth” has reduced barriers to trade and investment, without the necessary checks and balances. For Mexico, NAFTA merely expedited and formalized “the silent integration” that had been occurring since the Border Industrialization Project of 1965— without adding anything new to the table.4 Unlike the EU, NAFTA is a rigid document that has not reformed itself as needed to address issues of border control, immigration policies, and uneven socioeconomic development. In spite of sincere hopes for free trade and economic integration to raise living standards across the continent, the reality is that the unfettered markets have permitted NAFTA to persistently ignore the uneven economic development, and vulnerabilities each country faces. In so doing, the United States has been a quiet bystander to the inequalities proliferating from unchecked free trade. Both countries have been left vulnerable to NAFTA backlash. Mexico’s vulnerability stems from unsound economic development policies and overall slow growth. These factors have increased the US’ vulnerability, to migration. Fed up with uneven development, lack of job opportunities, poor working conditions, and low wages, many Mexicans are taking matters into their own hands and crossing the border, often illegally. Militaristic efforts to “defend” the border have done nothing but increase political tensions and migrant death tolls. NAFTA does not address the immigration problem and its root cause of unequal development. This paper begins with the European Union’s initial experience with enlargements and the experimentation process it underwent to reduce economic and social disparities between regions to further facilitate their single market objectives. After considering how the EU’s cohesion policy strengthened its own single market while simultaneously curbing migration, we present the NAFTA scenario, specifically against the backdrop of Mexico and the United States, in order to highlight the impotent mechanisms the United States relies upon to quiet the waves of economic migrants.