Trumping the NAFTA renegotiation: An alternative policy framework for Mexican-US cooperation and economic convergence Robert A. Blecker, Juan Carlos Moreno-Brid and Isabel Salat

NAFTA has utterly failed from a development standpoint and Mexico and US both need a new policy regime to reverse that rising inequality, secular stagnation, and regional divergences. If done with a cooperative spirit, the renegotiation of NAFTA can be a win-win for both, but a hasty US withdrawal from it would not work in favour of the average US and Mexican citizens. NAFTA_Renegotiation (Download the full text in PDF format) (This article was originally published in the World Economics Association)

Trump Trade Strategy Unclear Jomo Kwame Sundaram

US President-elect Donald Trump has announced that he will take the US out of the Trans-Pacific Partnership (TPP) Agreement on the first day of his presidency in January 2017. Now, it is widely expected that Trump's presidency will increase US trade protectionism, and consequently by others in retaliation, possibly triggering serious trade conflicts with difficult to predict consequences. After decades of denial by ‘free trade' advocates, it is now widely agreed that many manufacturing jobs in the US have been lost to both automation and offshore relocation by US corporations. Free trade agreements (FTAs) are also being blamed for the…

Trump’s Protectionist Charade C. P. Chandrasekhar

As January 20th, the day Donald Trump assumes his Presidency nears, the fear that he would turn US trade policy in a protectionist direction appears to increase. Protection against import competition and an attack on global relocation and outsourcing by American firms that are seen as destroying jobs in the US and immigration that is viewed as depriving the American working class of available livelihoods were central elements of the populist rhetoric that swung the white working class in Trump’s favour. Key items in Trump’s election campaign promise list were policies to recapture American jobs by clamping down on the…

The Trans-Pacific Partnership Agreement: Some Critical Concerns Jomo Kwame Sundaram and Anis Chowdhury

The TPP Agreement is mainly about imposing new rules favoured by large multinational corporations; so there are concerns that its provisions will serve to reduce the costs to and increase the earnings of multinational businesses, with little commensurate gain for host countries. tpp_canada_commons_select_committee  (Download the full text in PDF format)

Explaining Global Financial Imbalances: A critique of the saving glut and reserve currency hypotheses Thomas I. Palley

This paper examines three different explanations of the global financial imbalances. It begins with the neoliberal globalisation hypothesis that explains the imbalances as the product of the model of globalisation implemented over the past thirty years. It then examines the saving glut and reserve currency hypotheses. The paper concludes by arguing that both the saving glut and reserve currency hypotheses are inconsistent with the empirical record and both provide a misleading guide for policy. global_financial_imbalances (Download the full text in PDF format) (The paper was originally published as a working paper by the Macroeconomic Policy Institute (IMK).)

Trade Policies and Ethnic Discrimination in Mexico Alicia Puyana and Sandra Murillo

[Working Paper No. 03/2011] Given that the indigenous population in Mexico is the poorest segment of its society, this paper explores how inequality has been affected by the trade liberalisation put into effect after the eruption of the debt crisis in the early eighties and the coming into force of NAFTA. The focus is on the agricultural sector for two reasons: first, the regions with the highest concentration of indigenous population are specialised in agriculture; second, agriculture has been identified as the main loser from trade liberalisation. The paper presents direct and indirect evidence on discrimination at the municipal level…

Small farmers and the Doha Round: Lessons from Mexico’s NAFTA experience Mritiunjoy Mohanty

The paper is divided into three parts: Section I briefly introduces how developing countries have sought to protect the interests of small and marginal farmers in the on-going Doha round and the current state of play in those negotiations. Section II discuses the integration of Mexican agriculture in global markets under NAFTA and why the brunt of the adjustment was borne by small and marginal farmers. And finally, Section III proposes an alternate model of agricultural modernization centered on small-farmers and why for developing countries the stakes are much higher than for Mexico. I: Introduction - Special Products and the…

Mexican Economic Liberalization: The project and the realities Alicia Puyana Mutis

Mexico has been an early and radical reformer by signing, almost fifteen years ago, the North American Free Trade Agreement NAFTA. This study shows the course of the Mexican economy and explores to what degree the objectives of the reforms, as regards growth and employment, have progressed, following liberalization and the implementation of NAFTA. At the Mexican level of development, a more aggressive public investment policy is needed since the experience during the last two decades has shown that the reform process has not improved the greater well-being of the society. mexican (Download the full text in PDF format)

NAFTA and the Mexican Economy: A look back on a ten-year relationship Juan Carlos Moreno-Brid, Pablo Ruiz Napoles and Juan Carlos Rivas Valdivia

In a critical review of the impact of NAFTA on the Mexican economy, the authors argue that NAFTA has resulted in a reduction of Mexico’s potential long-term economic growth and a widening gulf between the “haves” and the “have-nots.” nafta_mexican_economy (Download the full text in PDF format)

Ten years of NAFTA Jayati Ghosh

The first day of this year marked the tenth anniversary of NAFTA – the North American Free Trade Agreement, which brought the economies of the United States, Canada and Mexico together. This was a trade deal preceded by much debate and opposition, but ultimately pushed through with enthusiastic support from the large corporations of the US, some would say even written by them. But the decade's experience suggests that it is mainly these corporations that have benefited, while almost all of the other promises of the agreement's supporters have turned sour. NAFTA was an ambitious agreement in some respects, bringing…

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