CARLETON UNIVERSITY
THE NORMAN PATERSON SCHOOL OF INTERNATIONAL AFFAIRS
536 INTRODUCTION TO THE NORTH AMERICAN FREE TRADE AGREEMENT
WINTER 1998 PROFESSOR MAUREEN APPPEL MOLOT
----------------------------------------------------------------------------------------------------------------
TIME: Wednesday 7:00 to 10:00 p.m. PLACE: 617 Southam Hall
Office Hours: Thursday 9 to noon
(or by appointment)
2A59 Paterson Hall
Phone 520-2600 ext 6656
Email: mmolot@ccs.carleton.ca
Course WWW-URL: http://mgmt.tamu.edu/mgmt.www/nafta/
COURSE DESCRIPTION
This graduate seminar focuses on the ongoing process of regional integration in the Americas, with particular emphasis on the North American Free Trade Agreement (NAFTA). Some attention is paid to regional integration schemes in South and Latin America, such as Mercosur and Caricom, but the main focus of the course will be on North America. Topics include: regional integration theory, the political economy of NAFTA, the NAFTA text, economic impacts of NAFTA, roles played by multinational enterprises within NAFTA, impacts of NAFTA on selected industries, the NAFTA labor and environmental side accords, NAFTA dispute settlement mechanisms, and deepening and broadening Western hemispheric integration to include other countries and issues.
COURSE FORMAT
The NAFTA seminar at NPSIA is being taught this year in conjunction with similar classes at Texas A&M University in College Station, Texas (Professor Lorraine Eden – email: leden@tamu.edu) and Instituto Tecnologico Autonomo de Mexico (ITAM – Professor Maria Isabel Studer – email: mstuder@eniac.rhon.itam.mx). We will use several different distance learning techniques throughout the semester: video-teleconferencing classes, an email network, desktop video & audio equipment, a NAFTA class WWW site, and NAFTA newsgroups.
For eight of the classes we will use video-conferencing to link Carleton with the Texas A&M and ITAM sites. One class will be run bilaterally with Texas A&M. We gratefully acknowledge a grant from US Embassy in Ottawa to cover the financial costs of the hook-up between Carleton University and Texas A&M. To accommodate this structure, the NPSIA NAFTA class will begin substantively on January 14 and end April 8. The latter date is one week after the end of classes; however, we need a week for a wrap-up on the topics covered and to evaluate the format of the seminar.
The amount of time we use the video-conference link will vary slightly from week to week. While we will be "on-line" occasionally for the full three hour class (this will be specified below), the more usual format will be for the NPSIA class to meet alone from 7:00 to 7:45 p.m. to do a quick review of the week’s readings and prepare for the trilateral session. CLASS WILL BEGIN PROMPTLY AT 7 P.M. We will take a quick break from 7:45 to 8 and then go on line from 8 to 9:30 (or a bit later depending on how the discussion unfolds). We will then have a short period to wrap up the class and look after any necessary housekeeping issues.
From time to time we will have guests in the seminar in one or all of the locations. At Carleton, these will be either Carleton faculty or persons from Ottawa with experience in the topic under discussion that week. Similarly, the ITAM and Texas A&M locations will have visiting speakers and faculty acting as resource persons.
Students will be organized into groups for the duration of the course. Groups ideally will consist of two students from each location, for a total of six students per group. Groups will be called upon to lead class discussion of the trilateral video-teleconferencing sessions. There will be three assignments in this course, each written as a group project. Student groups will present their assignments in class, and post them on a class website.
A key component of the course will be a NAFTA WWW site maintained at Texas A&M University. Students are expected to access the website regularly as it will be the main method of providing information to all three locations. Study questions, information on the assignments, lists of WWW sites on particular topics, etc., will be available on this website. In addition, the website will grow over time as student group assignments are added to the site. The current location of the NAFTA WWW site is: http://wehner.tamu.edu/mgmt.www/nafta. The TAMU webmaster is Mark Radulovich; he can be reached at radulovich-m@mba-lab.tamu.edu. The Carleton webmaster is Todd Hunter; he can be reached at thunter@chat.carleton.ca.
Students are expected to come to class prepared. Students must prepare the required readings for each week prior to that class and come to class prepared to discuss these readings. Because the seminar format requires a focus on discussion not lecture, it is requisite that all students come to class prepared. Students are also expected to keep abreast of recent developments related to regional integration in the Americas by reading newspapers, magazines, periodicals, recent journal articles, etc., on NAFTA.
Students must have an email account and read their email regularly. NAFTA newsgroups will be set up at Texas A&M for each class, and for the three classes jointly. Students can use these Newsgroups as bulletin boards to post questions, information, answers, etc., related to the course. CHAT groups will be set up so that students can work in groups across the three countries. CARLETON STUDENTS might find it easiest to work with the other members of their group through a group address so that all members of the group receive the same communication; you will have to make certain that members of the group are also copied on the replies.
WORKING IN GROUPS
Because of the investment in the trilateral character of the class, three (3) of the assignments will be done in groups, with each group comprised of students from each of the three countries. While some of you may be disappointed that you are unable to pursue a research project of particular personal interest, we feel that the learning that will occur through the group assignments will give each of you an experience that is quite unique.
Faculty will review student interests and capabilities carefully before striking the groups. We will attempt to create groups of six students, two from each location. This will require students to work together at two levels: local and cross-country. GROUPS WILL REMAIN THE SAME FOR THE THREE ASSIGNMENTS.
Groups will be set up following the class on January 14, 1998. BECAUSE THE FIRST ASSIGNMENT WILL BE DUE EARLY (February 4, 1998) IT IS ESSENTIAL THAT STUDENTS DECIDE AT THE OUTSET WHETHER THEY WILL REMAIN IN THE CLASS OR WITHDRAW. As you will appreciate, withdrawals after the groups have been structured will pose a problem for those who remain.
Because the working in groups electronically across countries is likely to be a new experience for most students, it is important that attention be addressed to some of the issues that will have an impact on the capacity of the group to complete the assignments. Among the issues that need to be considered/negotiated by each group immediately after the group assignments are made is:
[a] How will group decisions (e.g., choosing the group topic for each assignment) be made?
[b]Who will take the lead on each assignment?
[c] How will tasks be allocated among the group?
[d] How often should the group meet (weekly? Biweekly?)
[e] What methods do members prefer for communications (email? Newsgroup?)?
[f] What is the attitude of each member of the group to meeting deadlines?
[g] How regularly do group members read their email messages and respond to them?
[h] What happens if someone gets sick? Does not perform his/her assigned task?
Because the NAFTA WWW page is maintained at TAMU, we recommend that the Texas A&M students be responsible for converting each of the three group projects into HTML format and for giving the converted projects on disc or by email to the NAFTA webmaster for installation on the NAFTA WWW home page (see below).
Because this is the first time this course will be taught in a distance learning format, we are particularly interested in obtaining your feedback as we move through the course. This feedback will help us to address any problems that might arise during the semester and should enhance the quality of your educational experience. With this in mind, we have asked Dr. Zoe Barsness, Assistant Professor of Management at Texas A&M, to be Team Facilitator for the three classes. She can be reached by email at zbarsness@tamu.edu. In addition to the course instructor, Carole Dence, of Carleton’s Teaching and Learning Centre, can also be approached by Carleton students who may have questions arising out of the class format. During the course of the semester, you may be asked to provide feedback to the Team Facilitator (i.e., answering occasional questionnaires). These will be developed with reference to course concepts and projects, and will be fully debriefed in the classroom. Participation is strictly voluntary. Your contributions will help improve the quality of distance-learning education at the three universities.
RECOMMENDED TEXTS
There are no required texts in this course. There are a number of books relevant to the course, which are on reserve in the McOdrum Library and the NPSIA Resource Centre. These recommended texts, which are general readings on the NAFTA, are:
Barry Appleton. 1994. Navigating NAFTA: A Concise User’s Guide to the North American Free Trade Agreement. Toronto: Carswell Publishing.
Gary Clyde Hufbauer and Jeffrey Schott. 1993. NAFTA: An Assessment .Washington: Institute for International Economics.
Jon Johnson. 1994. The North American Free Trade Agreement: A Comprehensive Guide. Toronto: Carswell Book Inc.
Richard Lipsey, Daniel Schwanen and Ronald Wonnacott. 1994. The NAFTA: What’s In, What’s Out, What’s Next? Toronto: C.D. Howe Institute.
William Orme, Jr. 1996. Understanding NAFTA: Mexico, Free Trade and the New North America. Austin: University of Texas Press.
US International Trade Commission. July 1997. The Impact of the North American Free Trade
Agreement on the U.S. Economy and Industries: A Three Year Review. Washington, DC. Copies can be ordered free of charge from the US ITC; the document is also on the USITC website.
Sidney Weintraub. 1997. NAFTA At Three: A Progress Report. Washington: Center for Strategic and International Studies (CSIS).
Students should have access to the full text of the NAFTA. Students can either purchase a copy of the text, or the text and the side agreements are available on the internet at several sites (e.g., http://www.tradingfloor.com:80/nafta.htm). See the NAFTA WWW site for more details. Be sure to check the date of publication, as several versions are available on the web.
EVALUATION AND ASSIGNMENTS
The grade will be comprised of five (5) components, with each weighted equally:
Student participation 20
Assignment #1: NAFTA Briefing Note (due February 4) 20
Assignment #2: Industry Briefing Note (due March 4) 20
Assignment #3: Auto Strategies Under NAFTA (due March 25) 20
Take home examination (distributed April 8, due on April 15) 20
The assignments were selected so the students could look at NAFTA from three different levels of analysis: country (macro level), industry (meso level), and firm (micro level). The first (macro) assignment focuses on the actual NAFTA chapters and side agreements; these were the key topics of debate at the country negotiator level. The second (meso) assignment looks at specific industries and how these industries have been affected by NAFTA. The third (micro) assignment examines the responses of particular auto multinationals to the NAFTA.
Components of the Grade
1. Student Participation…………………………………………………………………... 20%
As noted above, students are expected to come to class prepared. Quality of participation is more important than quantity. We appreciate that the trilateral format may sometimes frustrate those of you who are active participants; however, we will have time before and after the video-conferencing component of the class for our own discussion. Moreover, each of you will have an opportunity to evaluate your own participation, as well as to evaluate the participation of the members of your group, at the end of the course.
2. Group Assignments
There will be three groups assignments in this course, each worth 20% of the final grade:
The general procedure for handing in each of the group assignments is as follows (note that late assignments will lose points):
[I] Each group must submit one copy of the assignment to each of the three instructors (3 copies in total) AT LEAST THREE DAYS PRIOR TO THE CLASS.
[ii] Each group is also responsible for putting its briefing note on the class web site AT LEAST THREE DAYS PRIOR TO CLASS (i.e. assignments must be emailed to the NAFTA webmaster no later than 5 pm. On the Sunday prior to the day the class meets).
[iii]The group must provide the instructors at each location with a "Resource File" containing: (1) a copy of all background materials collected for the topic and (2) copies of all correspondence among the group on this topic (3 files in total).
[iv] Students must provide individual and local team evaluation reports to the three instructors. These reports will be used as one component of each student’s participation grade.
[v] During the trilateral video-conferencing portion of the class, one member from each group will make a short (5 minutes) presentation on the group project. Students in other groups are expected to have read all the group assignments and come prepared (1) to ask questions of the authors and (2) engage in a trilateral discussion of the overall contents of the assignment. The details of each assignment are outlined below.
2a. NAFTA Chapter Briefing Note (presented in class on February 4)……………… 20%
Each group will prepare a short (no more than 6 to 8 single pages, excluding bibliography) overview paper on one of the chapters in NAFTA (including the side agreements). Student groups should register their choice of topic with their instructors ASAP; professors will try to avoid duplication of topics across groups.
The NAFTA briefing note should be organized around the following categories:
[i] Background on the political economy of the negotiation of the chapter (i.e., a brief report on who in each country was for, against, various components of the chapter)
[ii] Summary of key points in chapter
[iii] Short analysis of the expected effects of the chapter (short analysis of economic and political impacts, including potential winner and losers) at the national level
[iv] Bibliography of key readings (including web sites) on the chapter. Students should look for materials on the WWW, in library bases such as ABI Inform, government documents, etc.
2b. Industry Briefing Note (presented in class on March 4 & 11)……………………. 20%
Each group will select (in consultation with the instructors) an industry in North America. Each group will prepare a short (6 to 8 single spaced pages excluding bibliography) on how the industry has been affected by NAFTA. Possible sectors include: agriculture; banking; non-banking financial services; textiles and apparel; steel; land transportation; energy; telecommunications; intellectual property; petrochemicals. Groups are expected to do a sector different from that covered in assignment #1; the auto industry is also excluded. Professors will endeavour to prevent duplication of industries across groups.
The paper should be organized under the following categories:
[i] Brief description of the industry (size % growth rate of the industry; main products; who are the largest firms and where are they located in North America; relative importance of Canada, the US and Mexico in this industry; role played by multinational enterprises; who are the main suppliers and buyers of this industry’s products)
[ii] Industry positions during the NAFTA debate in each country (for/against; what wanted)
[iii] Impacts of NAFTA on the industry in each country (data on trade, investment, key impacts, firm responses
[iv] Bibliography of key readings (including web sites) on this industry. Students should look for materials on the WWW, in library bases such as ABI Inform, government documents, etc.
We expect that it will take two weeks to cover this assignment; therefore the instructors, in consultation with the groups, will determine which industries will be discussed in class the week of March 4 and which the following week.
2c. Auto Strategies Under NAFTA (presented in class on March 25)………………. 20%
Each group will select (in consultation with the instructors) one of the auto industry assemblers in North America. Each group will prepare a short (6 to 8 single spaced pages excluding bibliography) on the strategies the firm has developed in response to regional integration in North America, and how NAFTA has affected the firm.
The paper should be organized under the following categories:
[i] Brief description of the firm (size, growth rates, main products, where the firm’s plants are located within North America, relative importance of Canada, the US and Mexico to this firm as shares of the firm’s world sales and output;)
[ii] how NAFTA was expected to affect this firm
[iii] what strategies the firm has developed in response to NAFTA
[iv] Bibliography of key readings (including web sites) on this firm. Students should look for materials on the WWW, in library bases such as ABI Inform, government documents, etc.
A key component of this assignment will be using Auto Case 2000, an interactive software program developed by the International Motor Vehicle Program (IMVP) at Massachusetts Institute of Technology. This program, which will be available to all students in the three classes, provides detailed information on each of the world’s auto assemblers in terms of production, sales, sourcing, trade, costs, plant locations, and product mix. This information, along with information on the firm gathered from general sources (WWW, library searches), will form the basis of the Research Folder and paper. See the readings on the auto industry listed for the Week of March 25, 1998.
5. Take home exam (distributed April 8, due April 15)………………………………... 20%
Students will be asked to answer two or three questions on NAFTA. The purpose of the take home exam is to determine how much was gained from the class and to ensure that NPSIA students have an individual assignment in addition to the three group assignments.
ACADEMIC DISHONESTY
Students should familiarize themselves with the section in the Carleton University 1997-98 Calendar on "Instructional Offences" (pp.30-31) and with the relevant section of NPSIA’s 1997-98 Information Package. CHEATING, PLAGIARISM AND/OR COMPLEMENTARITY ON THE ASSIGNMENTS AND/OR EXAM WILL HAVE SEVERE PENALTIES.
STUDENT WITH DISABILITIES
If there is any student in the course who, because of a disability, may need special accommodation, discuss this with the instructor at the beginning of the seminar. As well, students must contact the Paul Menton Centre for Persons with Disabilities to obtain a Letter of Accommodation for any special arrangements. Please do this as soon as possible.
CLASS SCHEDULE FOR CARLETON, ITAM AND TAMU
|
Date |
Carleton |
TAMU |
ITAM |
Joint |
Topics |
|
Jan 7 |
1 |
X |
X |
X |
CA: Intro (syllabus only) |
|
Jan 14 |
2 |
X |
1 |
X |
CU: Regional Integration ITAM: Intro & Reg Integration |
|
Jan 21 |
3 |
1 |
2 |
1 |
Why NAFTA? |
|
Jan 28 |
4 |
2 |
3 |
2 |
Impact of NAFTA |
|
Feb 4 |
5 |
3 |
4 |
3 |
A Walk through the NAFTA Asgn#1: NAFTA Notes |
|
Feb 11 |
6 |
4 |
5 |
4 |
MNEs, FDI & NAFTA |
|
Feb 18 |
7 |
5 |
6 |
5 |
The Side Agreements |
|
Feb 25 |
X |
6 |
7 |
TAMU & ITAM |
US-Mexico Bilateral Issues |
|
March 4 |
8 |
7 |
8 |
6 |
Industry Impacts Asgn #2: Industry Notes |
|
March 11 |
9 |
8 |
9 |
7 |
Asgn#2 [cont’d] |
|
March 18 |
10 |
X |
10 |
X |
CU, ITAM: Broadening vs Deepening NAFTA |
|
March 25 |
11 |
9 |
11 Condon |
8 |
NAFTA Dispute Settlement Asgn#3: Auto Strategies |
|
April 1 |
12 |
10 |
X |
TAMU & Carleton |
US-Canada Bilateral Issues
|
|
April 8 |
13 |
11 |
X |
X |
Carleton: Wrap-Up TAMU: Broadening NAFTA |
|
April 15 |
X |
12 |
X |
X |
TAMU: Texas & NAFTA |
|
April 22 |
X |
13 |
X |
X |
TAMU: Wrap-Up |
|
April 29 |
X |
14 |
X |
X |
TAMU: No class |
REQUIRED READING LIST BY TOPIC AND BY WEEK
NOTE: The required readings are starred; all students must do the required readings prior to class. Some additional readings are listed for students who have a particular interest and wish to read more deeply on that topic.
UNILATERAL CLASS………………………………………………………………….. JAN 7
CARLETON: INTRODUCTION TO COURSE
In this class, we will get acquainted and go over the Course Syllabus. The instructor will give a brief introduction to regional integration in the Americas.
UNILATERAL CLASS………………………………………………………………….JAN 14
CARLETON & ITAM:
REGIONAL INTEGRATION IN THE AMERICAS
This class provides an overview of the theory of regional economic integration, focusing on types of regional integration schemes, economic (static and dynamic) of customs unions and free trade areas, and a brief introduction to NAFTA as a regional integration scheme.
* Bhagwati, Jagdish, 1992. "Regionalism versus Multilateralism," World Economy 15,5, September, pp. 535-55.
* Hart, Michael, "Doing the Right Thing: Regional Integration and the Multilateral Trade Regime," mimeo.
* Shiells, Clinton, 1995. "Regional Trade Blocs: Trade Creating or Diverting?" Finance and Development, March, pp. 30-32.
*Read either:
Hoekman, Bernard and Michael Kostecki, 1995. The Political Economy of the World Trading System. Oxford University Press, Ch. 9 (Regional Integration), pp. 213-32.
OR
Gibb, Richard, 1994. "Regionalism in the world economy," in Richard Gibb and Wieslaw Michalak, eds., Continental Trading Blocs. Chichester: John Wiley &Sons, pp. 11-35.
UN Conference on Trade and Development, World Investment Report 1994: Transnational Corporations, Employment and the Workplace. New York 1994, pp. 126-46.
Students might find the debate over the pros and cons of integration between Fred Bergsten and Jagdish Bhagwati, over President Clinton’s effort to get fast-track last fall of interest. The articles are in the September 27, 1997 and October 18, 1997 issues of The Economist, respectively and are in the 536 box.
TRILATERAL CLASS 1 JAN 21
WHY NAFTA?
THE POLITICAL ECONOMY OF North American INTEGRATION
This class deals with North American integration from an international political economy (IPE) perspective, focusing on the political economy motivations for regional integration in North America.
* Orme, William A. Jr. 1993. "Myths versus Facts: The Whole Truth about the Half-Truths," Foreign Affairs Vol. 72, No 5 (Nov/Dec), pp. 2-12.
* Krugman, Paul. 1993. "The Uncomfortable Truth about NAFTA: It’s Foreign Policy, Stupid," Foreign Affairs Vol. 72, No 5 (Nov/Dec), pp. 13-19.
* Henrikson, Alan K., 1995. "The U.S. 'North American' Trade Concept: Continentalist, Hemispherist or Globalist?" in Donald Barry et al, Toward A North American Community: Canada, the United States and Mexico. Boulder CO: Westview Press, pp. 155-84.
* Winham, Gilbert R., 1994. "NAFTA and the trade policy revolution of the 1980s: a Canadian perspective," International Journal, XIX, 3, pp. 472-508.
* Pastor, Manuel and Carol Wise. 1994. "The origins and sustainability of Mexico's free trade policy." International Organization Vol.48, 3, pp. 459-89.
Helleiner, Gerald. 1993. "Considering US-Mexico Free Trade," In Grinspun, Ricardo and Maxwell A. Cameron, eds. The Political Economy of North American Free Trade. New York and Montreal: St. Martin's Press and McGill-Queen's, pp. 45-60.
Deblock, Christian and Michele Rioux. 1993. "NAFTA: The Trump Card of the United States?" Studies in Political Economy No. 41 (Summer), pp. 7-43.
TRILATERAL CLASS 2 JANUARY 28
EVALUATING THE IMPACTS OF NAFTA
This week is a review of some of the empirical work that has been done on NAFTA.
* [Primarily for TAMU students] Eden, Lorraine. The Simple Analytics of Free Trade Areas. Class notes to be posted on the NAFTA WWW home page.
* Weintraub, Sidney. 1997. NAFTA at Three: A Progress Report. Washington, DC: Center for Strategic and International Studies. Chapters 1-3, pp. 1-52.
* US International Trade Commission. July 1997. The Impact of the North American Free Trade Agreement on the U.S. Economy and Industries: A Three Year Review. Washington. Chapters 3 and 4 (The North American Economies and Effects of NAFTA on US Industry Performance: Trade, Labor and Productivity).
* Schwanen, Daniel. 1997. "Trading Up: The Impact of Increased Continental Integration on Trade, Investment and Jobs in Canada." C.D. Howe Institute Commentary. No 89. March.
Lipsey, Richard, Daniel Schwanen and Ronald Wonnacott. 1994. The NAFTA: What’s In, What’s Out, What’s Next. Toronto: C.D. Howe Institute. Ch. 2: Canada’s Trade Policy Agenda (pp. 17-25), Ch. 9: Did Canada Achieve Its Negotiating Objectives? (pp. 137-46) and Ch. 10: The Impact of the NAFTA on Canada’s Economy (pp. 147-57).
Hufbauer, Gary and Jaqueline McFadyen. 1997. "Judging NAFTA." Canada-US Law Journal, Vol 23, pp. 11-45.
Ros, Jaime, 1994. "Mexico and NAFTA: Economic Effects and the Bargaining Process," in Victor Bulmer-Thomas et al., Mexico and the North American Free Trade Agreement: Who Will Benefit? New York: St Martin’s Press, pp. 11-28.
Cameron, Maxwell, 1996. "NAFTA and Economic Security: Lessons from the Financial Crisis in Mexico." Mimeo.
TRILATERAL CLASS 3 FEBRUARY 4
A WALK THROUGH THE NAFTA TEXT
GROUP ASSIGNMENT #1: NAFTA BRIEFING NOTE
NOTE: THIS CLASS WILL BE ON LINE FOR THE FULL THREE HOURS.
This class provides a general overview of the text of the NAFTA agreement and its side accords. Professors Brian Tomlin and Max Cameron [Carleton], who are writing a book on the NAFTA negotiations, will come to class to talk about the negotiations and difficult issues. Professors Tomlin and Cameron will make a short presentations and answer questions on the negotiations for the first hour. Following that, we will have student presentations, questions and discussions on selected NAFTA chapters.
* Cameron, Maxwell and Brian Tomlin. Forthcoming. South of the Border: Negotiating North American Free Trade, Ch. 6 ("The Dallas Jamboree"). Mimeo.
* Hart, Michael. 1991. A North American Free Trade Agreement: The Elements Involved. The World Economy Vol. 14, 2, March, pp. 87-101.
Hufbauer, Gary Clyde and Jeffrey Schott. 1993. NAFTA: An Assessment .Washington: Institute for International Economics. Chapter 1: Overview and Scorecard (pp.1-31), and Appendix: An Evaluation of the NAFTA (pp.119-53).
Students might also find the perspective of a Mexican negotiator of interest. See in particular, Chapter 2, "Negotiations" in Hermann van Bertrab, Negotiating NAFTA: A Mexican Envoy’s Account. Washington: CSIS 1997, pp. 36-72.
The readings below are reference materials for the students as background to help them in preparing their individual presentations on specific NAFTA chapters.
NAFTA: Finalized texts of agreement & appendices (can be found on the WWW at http://www.tradingfloor.com:80/nafta.htm).
Richard Lipsey, Daniel Schwanen and Ronald Wonnacott. 1994. The NAFTA: What's In, What's Out, What's Next .Toronto: C.D. Howe Institute. Ch. 3: The NAFTA in Outline (pp. 26-38), Part II: The NAFTA in Detail (pp. 39-133), Ch. 11: Constraints on Government Policy (pp. 158-64).
Jon Johnson, 1994. The North American Free Trade Agreement: A Comprehensive Guide. Toronto: Carswell Book Inc.
TRILATERAL CLASS 4 FEBRUARY 11
MULTINATIONALS, FOREIGN INVESTMENT AND NAFTA
This week’s readings focus on (1) the role of multinationals, particularly US multinationals, in integrating the North American economy, (2) the investment chapter in NAFTA, and (3) the reactions of multinationals to regional integration in North America.
.* Vernon, Raymond. 1994. Multinationals and Governments: Key Actors in the NAFTA. In Eden, Lorraine, ed. Multinationals in North America. Calgary: University of Calgary Press, pp. 25-52.
* Gestrin, Michael and Alan Rugman, 1994. "The North American Free Trade Agreement and foreign direct investment, " Transnational Corporations Vol. 3,1, February, pp.77-95.
* Eden, Lorraine. 1994. Who Does What After NAFTA? Location Strategies of U.S. Multinationals. In Lorraine Eden, ed., Multinationals in North America (University of Calgary Press 1994), pp. 193-252.
* Calderon, Alvaro, Michael Mortimore and Wilson Peres. 1995. Mexico’s Incorporation into the New Industrial Order: Foreign Investment as a Source of International Competitiveness. Desarrollo Productivo, No. 21. Santiago, Chile: United Nations Economic Commission for Latin America and the Caribbean (ECLAC). 41 pp.
Eden, Lorraine. 1996. The North American Investment Regime. Transnational Corporations. Vol. 5, 3, December, pp. 61-98.
TRILATERAL CLASS 5 FEBRUARY 18
THE NAFTA SIDE AGREEMENTS
This class focuses on NAFTA and social issues, the role played by labour in the NAFTA negotiations, the NAFTA side agreement on labour standards, and the new institution, the Commission for Labour Cooperation, that has been established to monitor compliance with the labour accord.
* Conybeare, John and Mark Zinkula. 1996. Who Voted Against the NAFTA? Trade Unions Versus Free Trade. World Economy Vol.19, No.1 (January), pp. 1-12.
* Bierman, Leonard and Rafael Gely. 1995. The North American Agreement on Labor Cooperation: A New Frontier in North American Labor Relations. Connecticut Journal of International Law Vol. 10, No. 2 (Spring), pp. 533-69.
* Sanchez, Roberto A. 1994. "NAFTA and the Environment" in Victor Bulmer-Thomas et al., Mexico and the North American Free Trade Agreement: Who Will Benefit? New York: St Martin’s Press, pp. 95-117.
* Schuler, Douglas. 1996. The NAFTA and the Environment: Trade, Diplomacy and Limited Protection. The International Trade Journal Vol.10, No.3 (Fall): 353-77.
* Johnson, Pierre Marc and Andre Beaulieu, 1996. The Environment and NAFTA: Understanding and Implementing Continental Law. Washington, D.C. and Peterborough, Ontario: Island Press/Broadview. Chapter 3 ("NAFTA and the Ability of Governments to Legislate in Favor of the Environment). Some of the Canadian students may be interested in Chapter 11 ("A Special Regime for Canada"), pp. 224-36.
Orme, William. 1996. Understanding NAFTA. Austin: University of Texas. Chapter 5, "Jobs, Jobs, Jobs: The NAFTA Numbers Game".
Watson, William. 1993. "Environmental and Labor Standards in the NAFTA." C.D. Howe Institute Commentary No. 52. September.
Mayer, Frederick. 1994. "The NAFTA, Multinationals and Social Policy," in Lorraine Eden, ed., Multinationals in North America. Calgary: University of Calgary Press, pp. 509-24.
BILATERAL CLASS [ITAM & TAMU] FEBRUARY 25
US-MEXICO BILATERAL ISSUES
Carleton University Winter Break
TRILATERAL CLASSES 6 & 7 MARCH 4 & 11
INDUSTRY IMPACTS OF NAFTA
ASSIGNMENT #2: INDUSTRY BRIEFING NOTES
NOTE: BOTH CLASSES WILL BE ON LINE FOR THE FULL THREE HOURS.
In these two classes, student groups will present their second assignment analyzing the impacts of NAFTA on selected industries.
UNILATERAL CLASS MARCH 18
CARLETON & ITAM:
BROADENING VERSUS DEEPENING NAFTA
This week focuses on the pros and cons of deepening versus broadening of NAFTA, including attention to the Canada-Chile FTA and the possibilities of a Canada-Mercosur link. THIS CLASS WILL BE HELD SEPARATELY AT EACH LOCATION.
* Weintraub, Sidney, 1994. NAFTA: What Comes Next? Westport CT: Praeger, Ch 4 ("The Meaning of Deepening) and Ch. 5 ("The Widening of NAFTA"), pp. 56-105.
* Gestrin, Michael and Alan Rugman, 1994. "Economic regionalism in Latin America," International Journal Vol. XLIX,3, Summer , pp. 568-87.
* Waverman, Leonard.1995. "Post-NAFTA: Can the United States, Canada and Mexico Deepen their Economic Relationship? in Jean Daudelin and Edgar Dosman, eds., Beyond Mexico. Ottawa: Carleton University Press, pp. 55-80.
* Bailey, Glen, 1995. "Canadian Diplomacy as Advocacy: The Case of Chile and the NAFTA," Canadian Foreign Policy Vol. 3,3, Winter, pp. 97-112.
Keith Christie, 1995. "The Four Amigos and Beyond: Towards the Free Trade Area of the Americas," Department of External Affairs and International Trade Policy Staff Paper 95/10.
Raul Laban and Patricio Meller. 1997." Trade Strategy Alternatives for a Small Country: The Chilean Case," in Richard Lipsey and Patricio Meller, eds., Western Hemisphere Trade Integration: A Canadian-Latin American Dialogue. New York: St. Martin’s Press, pp. 110-35.
Eden, Lorraine, M. Tina Dacin and William Wan, 1997. "Standards Across Borders: Crossborder Diffusion of the Arm’s Length Standard in North America, 1917-97." Paper presented at the ACSUS Conference, Minneapolis, November.
Students might also want to look at Vivek Dehejia’s op ed piece "Hold out for multilateral trade deals," The Ottawa Citizen, December 4, 1997, p. A17.
TRILATERAL CLASS 8 MARCH 25
DISPUTE SETTLEMENT IN THEORY AND PRACTICE
and
GROUP ASSIGNMENT #3: AUTO STRATEGIES UNDER NAFTA
Dispute settlement mechanisms in the NAFTA are of three types: (1) trade remedy laws (e.g. countervailing and antidumping duties); (2) general dispute settlement mechanisms, and (3) settlement of investment disputes. Prof. Bradley Condon will be the instructor for the ITAM class.
NOTE: THIS CLASS WILL BE ON LINE FOR THE FULL THREE HOURS. The first 75 minutes will be devoted to the topic of dispute settlement; the second 75 minutes to presentations and discussion of the autos assignment.
Readings on NAFTA Dispute Settlement
* Winham, Gilbert. 1993. Dispute Settlement in NAFTA and the FTA. In Steven Globerman and Michael Walker, eds., Assessing NAFTA: A Trinational Analysis (Vancouver: The Fraser Institute), pp. 251-70.
* Robson, William et al. 1995. What Is the Fight About? An Overview of Trade Disputes in North America. In Beatrice Leycegui, William Robson and S. Dahlia Stein, eds. Trading Punches: Trade Remedy Law and Disputes Under NAFTA. Washington: National Planning Association, pp. 1-23.
* Alvarez, Guillermo Aguilar et al. NAFTA Chapter 19: Binational Panel Review of Antidumping and Countervailing Duty Determinations. In Beatrice Leycegui, William Robson and S. Dahlia Stein, eds. Trading Punches: Trade Remedy Law and Disputes Under NAFTA. Washington: National Planning Association, pp. 24-42.
ADDITIONAL READINGS TO COME FROM PROF. CONDON
Huntington, David S. 1993. Settling Disputes under the North American Free Trade Agreement. Harvard International Law Journal Vol. 34,2 (Spring), pp. 407-43.
Background Readings for the Autos Assignment
Eden, Lorraine and Maureen Appel Molot. 1993. "Insiders and outsiders: defining ‘who is us’ in the North American automobile industry." Transnational Corporations Vol. 2,3, December, pp. 31-64.
Johnson, Jon. 1993. NAFTA and the Trade in Automotive Goods. In Globerman, Steven and Michael Walker (eds) Assessing NAFTA: A Trinational Analysis. Vancouver, BC: The Fraser Institute, pp. 87-129.
US Office of Technology Assessment (OTA). 1992. US-Mexico Trade: Pulling Together or Pulling Apart? ITE-545. Washington, DC: US Government Printing Office. Ch.7: Autos and Auto Parts, 133-50.
USITC. July 1997. The Impact of the North American Free Trade Agreement on the U.S. Economy and Industries: A Three Year Review. Washington. Ch.6 , pp. 6-47 to 6-60 (Motor vehicles; Motor Vehicle parts).
Studer, Isabel, 1994. "The Impact of NAFTA on the Mexican Auto Industry," North American Outlook (NAFTA's Impact on the North American Automobile Industry) Vol. 5,1, November, pp. 20-55.
BILATERAL CLASS (CARLETON & TAMU) APRIL 1
CANADA-US BILATERAL ISSUES
NOTE: THIS CLASS WILL BE ON LINE FOR THE FULL THREE HOURS.
This class examines Canada-US bilateral issues related to NAFTA, such as cultural industries, subsidies, marketing boards, fisheries disputes, softwood lumber, etc.
* Acheson, Keith and Christopher Maule. 1996. Canada’s Cultural Exemption - Insulator or Lightning Rod? World Competition 20,1 September , pp. 67-89.
* Atkey, Ronald. 1977. "Canadian Cultural Industries Exemption From NAFTA – Its Parameters." Canada-US Law Journal, Vol. 23, pp. 177-200.
* Hertz, Allen. 1997. " Shaping the Trident: Intellectual Property Under NAFTA: Investment Protection Agreements and the World Trade Organization." ." Canada-US Law Journal, Vol. 23, pp. 261-325.
* Morici, Peter. 1996. Resolving the North American Subsidies War. Canadian-American Public Policy No.27 (September), pp. 1-34.
NAFTA panel decision on Canadian marketing boards.
Anderson, Andrew. 1995. Seeking Common Ground: Canada-U.S. Trade Dispute Settlement Policies in the Nineties (Boulder: Westview Press). Ch.1.
Beatrice Leycegui, William Robson and S. Dahlia Stein, eds. Trading Punches: Trade Remedy Law and Disputes Under NAFTA. Washington: National Planning Association.
Cohn, Theodore. 1994. The Future of Canada-American Agricultural Trade Relations. The Northwest Journal of Business & Economics, Special Edition 1994: Canada-US Relations in the Post-NAFTA Environment. Steven Globerman and David Merrifield (eds.). Bellingham, WA: Western Washington University, pp.55-72.
UNILATERAL CLASS APRIL 8
CARLETON - WRAP-UP
This class will summarize the class, the issues raised by NAFTA, and evaluate the video-conferencing format. Student evaluations will be done. CARLETON TAKE-HOME EXAM WILL BE DISTRIBUTED