We use cookies to provide you with a better experience. By continuing to browse the site you are agreeing to our use of cookies in accordance with our Cookie Policy.
  • ::COVID-19 COVERAGE::
  • INDUSTRY PRESS ROOM
  • ABOUT
  • CONTACT
  • MEDIA FILE
  • Create Account
  • Sign In
  • Sign Out
  • My Account
Free Newsletters
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
  • MAGAZINE
    • Current Issue
    • Archives
    • Digital Edition
    • Subscribe
    • Newsletters
    • Mobile Apps
  • TRANSPORTATION
  • MATERIAL HANDLING
  • TECHNOLOGY
  • LIFT TRUCKS
  • PODCAST ETC.
    • Podcast
    • Blogs
      • Analytics & Big Data
      • Best Practices
      • Change Me
      • Empowering Your Performance Edge
      • Logistics Problem Solving
      • One-Off Sound Off
      • Public Sector Logistics
      • Two Sides of the Logistics Coin
      • Submit your blog post
    • Events
    • White Papers
    • Industry Press Room
      • Upload Your News
    • New Products
      • Upload Your Product News
    • Conference Guides
    • Conference Reports
    • Newsletters
    • Mobile Apps
  • DCV-TV
    • DCV-TV 1: News
    • DCV-TV 2: Case Studies
    • DCV-TV 3: Webcasts
    • DCV-TV 4: Viewer Contributed
    • DCV-TV 5: Solution Profiles
    • MODEX 2020
    • Upload Your Video
Home » A new NAFTA?
big picture

A new NAFTA?

November 7, 2014
Peter Bradley
No Comments

Twenty years ago—21 in January—after years of often-acrimonious debate, the North American Free Trade Agreement (NAFTA) took effect. The agreement over time eliminated virtually all tariffs on trade among the United States, Canada, and Mexico. Today, based on population and gross domestic product (GDP), the NAFTA territory is the world's largest free-trade area, linking 450 million people producing $17 trillion worth of goods and services. Trade among the three countries has roughly tripled since NAFTA went into effect. In 2012, according to the Office of the United States Trade Representative, U.S. exports to Canada and Mexico totaled $597 billion and imports totaled $646 billion.

Twenty years in, the effects of the accord are mixed at best. It has not produced the depth of economic dislocation expected by its opponents, but there has undoubtedly been some. While wages in the U.S. have remained stagnant since the adoption of NAFTA, it is difficult if not impossible to prove that NAFTA (or at least NAFTA alone) is the cause for that. Nor has it lived up to the highest expectations of its supporters, though there have certainly been benefits for all three nations. It is arguable that much of the growth in trade may well have occurred without it. Then again, lower trade barriers may have helped enable the development of international supply chains. That's almost certainly true for the automotive industry, among others.

I bring this up now because a new report prepared by a task force sponsored by the influential Council of Foreign Relations calls for strengthening ties among the U.S., Canada, and Mexico. The task force, chaired by David H. Petraeus, retired U.S. army general, and Robert B. Zoellick, former president of the World Bank Group, is made up of some heavy-hitting government officials, scholars, and business executives, so it's wise to consider it a template for future foreign policy debates. The issues raised in the report could have real and long-lasting effects on the three nations' economies and workforces.

The report, North America: Time for a New Focus, recommends closer collaboration among the three nations in the areas of energy, economic competitiveness, security, and community. It urges development of a regional energy strategy and building new pipelines (including the controversial Keystone XL), bolstering economic competitiveness through the "free and unimpeded movement of goods" across borders, and strengthening security through a unified continental strategy. What may be most contentious in the current political environment is a call for comprehensive immigration reform and creation of a "mobility accord" to facilitate movement of workers.

I have doubts that a broad accord like the one outlined in the report is even on the agenda in Washington. But it behooves anyone in business to pay close attention when it does arrive.

Transportation Supply Chain Services Regulation/Government Customs Processing Global Logistics Safety & Security
  • Related Articles

    A talk with Mexico's NAFTA advocate

    Mexican approach to NAFTA renegotiation offers lessons for U.S., observers say

    NAFTA's never-ending story

Peterbradley
Peter Bradley is an award-winning career journalist with more than three decades of experience in both newspapers and national business magazines. His credentials include seven years as the transportation and supply chain editor at Purchasing Magazine and six years as the chief editor of Logistics Management.

Recent Articles by Peter Bradley

From temp to management: interview with Diane Garforth

Watching over intermodal's interests: interview with Joni Casey

Building resilience into the supply chain: interview with Yossi Sheffi

You must login or register in order to post a comment.

Report Abusive Comment

Most Popular Articles

  • IBM survey says digitalization trends will sweep trucking industry by 2030

  • Gartner survey signals increased investment in resilience over the next two years

  • What Level of Automation is Right for Your Warehouse?

  • Growing up … and up and up: interview with Sam Bertram

  • Old Dominion adds nine freight service centers to handle business growth

Now Playing on DCV-TV

D92f0dd1 a98c 434a 9e17 30b63ee72c90

Automated Pack-out and Print-Apply System for thredUP

DCV-TV 4: Viewer Contributed
SilMan Industries designed and implemented a mixed polybag-carton system, including automated print and apply, in a new regional Fulfillment Center for thredUP, one of the world’s largest online resale platforms for women’s and kids’ apparel, shoes, and accessories. The Situation Secondhand clothing and online...

FEATURED WHITE PAPERS

  • Time to rethink your lift truck power

  • Warehouse Management System Project Toolkit

  • Solving Talent Management Challenges Now and In the Future

  • Shaping Up Last Mile Delivery to Surpass Customer Expectations

View More

Subscribe to DC Velocity Magazine

GET YOUR FREE SUBSCRIPTION
  • SUBSCRIBE
  • NEWSLETTERS
  • ADVERTISING
  • CUSTOMER CARE
  • CONTACT
  • ABOUT
  • STAFF
  • PRIVACY POLICY

Copyright ©2021. All Rights ReservedDesign, CMS, Hosting & Web Development :: ePublishing