The Linking Giant: An Analysis and Policy Implications of the Canada-Mexico-U.S. Free Trade Area

Since January 1989, when the Canada-U.S. Free Trade Agreement was signed, the global economic landscape has witnessed dramatic changes. With the collapse of Eastern Europe and communism and the emerging economic powerhouse in the Far East, Mexico became interested in the Canada-U.S. negotiations and there are prospects of a new economic alliance in North America. There are potential ingredients in the emerging North American Free Trade Agreement (NAFTA) for a North American common market. This chapter examines the potential of, and possible problems on the way to, the achievement of NAFTA.