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An Analysis on NAFTA’s Evolution and Its Indication to the Regional North-south Relations

Author: SuiXiaoZuo
Tutor: LiuQingJian
School: Renmin University of China
Course: Of Diplomacy
Keywords: NAFTA Regional North-South relations International Political Economy Economic Globalization
CLC: F114.46
Type: Master's thesis
Year: 2005
Downloads: 514
Quote: 2
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Abstract

North America Free Trade Agreement (NAFTA) is the most typical regional group composed of developed countries and developing countries in the world. Since founded in 1994, it has made great progress in politics and economy. Though its main function is promoting the development of economy, objectively, it has presented a new mode for the development of the north-south relations. NAFTA’s evolution has some important inspirations for the regional north-south relations, and this article will focus on this. Since the end of the Second World War, in order to promote their own development, the developing countries recommend to reform the unreasonable old international political economic order, and establish a new one. But this process had stagnated in 1990 for the lack of developed countries’ auspice. Today, developing countries should adopt a new way to develop regional north-south relations, since global north-south relations have stagnated, so that their own political and economic interests can be maintained. The analysis of my article is mainly composed of three aspects, they are as follows: First part is introduction. The author puts forward the object of this article, that is, NAFTA and regional north-south relations. Then, the author analyzes the theoretical meanings and practical meanings of this topic in order to make good preparations for the following text. Second part is the evolution of NAFTA. The author makes detailed descriptions about the evolution of NAFTA, analyzes its reasons, main fruits, exited problems and its important role in the regional north-south relations. Third part is the indication of NAFTA to the regional north-south relations. Since the end of the cold war, international political and economic cooperation has been greatly strengthened. There are not only many economic cooperation groups among developed countries, but also more and more groups composed of developed and developing countries. NAFTA is the most typical example, at the same time, it is also a model for regionalization of the north and the south. So it has great importance to American, Canadian, Mexico people as well as the whole international society. NAFTA’s establishment was promoted by many internal and external factors. First is the collective promotion of economic globalization and regionalization. Since 1990s, economic globalization has been developing at an unprecedented speed, technological revolution has made more progress. At the same time, socialization and internationalization has been strengthened. At this background, regionalization has s new content,that is “new regionalization” characterized by openness. So the con-effect of economic globalization and regionalization was the special external environment of the development of NATFA. Second, America’s domination and Mexico’s involvement were the main pushing power. In the process of the establishment and development of NAFTA, America played a leading role. The competition between America and other developed countries became more and more fierce, and America had its own strategy, all of these made it so enthusiastic in establishing a north-south cooperation groups in American area. At the same time, Mexico’s involvement was also an important promotion. Mexico needed to promote its economic and political development through its cooperation with other developed countries. Only by doing so, it could resist marginalization. Besides, Canada also had an important role in this process. It is deeply dependent on America, and America is its biggest trade partner. ThoughCanada had a different opinion in the market admittance and economic policies with Mexico, it still joined the negotiation after thinking a lot. After a decade development, NAFTA has made great progress. For one thing, three countries of the North America have all promoted their economic development. For the other, there are also demonstration effect on the development of theory and institution, and great influence on other developing countries. But, NAFTA also has some inherent faults,

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