NAFTA -- accomplishments, challenges, future directions (thinking with the help of Europe).

In the late 1980s and early 1990s, the rules governing trade relations in North America underwent important changes as a result of the successful negotiation and ratification of two treaties. First came the Canada-US Free Trade Agreement (CUFTA) in 1987. This was followed by the North American Free Trade Agreement (NAFTA) ratified by Canada, Mexico and the US in 1993. CUFTA was largely absorbed into NAFTA - alternatively one might say that CUFTA was "enlarged". More than 10 years have past since NAFTA came into effect in January 1994, and numerous observers have begun to reflect over what the agreement has accomplished and how North Americanism can be protected and further developed. These reflections are usually based on a favorable view of both the agreement itself and "North Americanism" and rooted in a conviction that they need to be further developed in order to avoid the risk of stagnation, irrelevance, or even backsliding. The negative consequences of September 11 also highlighted NAFTA weaknesses and vulnerabilities. Finally, and not least, the example of European integration, which has deepened and grown considerably in the past 15 years, has encouraged reflection about the future of North American regional integration. The purpose of this paper is to think about the possibility of increased North American integration in light of what the European experience reveals about regional integration. It is obvious that the European context and experience are quite different from North America, and this often leads observers to conclude that there is little about the former that will help us understand the latter. While I do not want to argue that North American developments will mirror Europe's, I do think we gain insights from studying European developments. A considerable body of theory has been developed to explain cooperation in Europe. I will summarize what it suggests about driving forces behind integration. I also look at the empirical record of European integration. I then compare similarities and differences between the European and North American experiences. I conclude by discussing proposals for pushing North American integration further and whether recent Canadian and US elections can be expected to make any difference in this regard. [ABSTRACT FROM AUTHOR]