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North American Free Trade

Assessing the Impact

Edited by Nora Claudia Lustig, Barry P. Bosworth, and Robert Z. Lawrence

The proposed North American Free Trade Agreement (NAFTA) represents a historic change in relations among Canada, Mexico, and the United States. The effect of the agreement on the three economies has generated controversy and some degree of alarm within each country.

In this book, noted trade and development experts review the available literature on the effects of NAFTA on the three member countries and the world trading system. They evaluate how NAFTA will affect areas such as economic growth, employment, income distribution, industry, and agriculture in Canada, Mexico, and the United States; and consider the significance the trade agreement holds for the rest of the world.

Drusill K. Brown begins the discussion by providing an overview and comparison of the general results from recent studies. Raúl Hinojosa-Ojeda and Sherman Robinson explore in greater detail the potential effects of NAFTA on wages and employment in Mexico and the United States. Sidney Wintrab reviews industry-specific effects of NAFTA, in particular, the environment, the social agenda, and human rights and democracy. Finally, Carlos Alberto Primo Braga considers the implications of NAFTA on the rest of the world.

Following each of these chapters, international scholars assess the alternatives and provide recommendations for future research.

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