TPP, the NAFTA Countries, and the Integration of the Americas

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  "authors": [
    "Uri Dadush",
    "Beatriz Leycegui"
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    "Carnegie Endowment for International Peace"
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  "primaryCenter": "Carnegie Endowment for International Peace",
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  "regions": [
    "North America",
    "United States",
    "South America",
    "East Asia",
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  "topics": [
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    "Trade",
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Other

TPP, the NAFTA Countries, and the Integration of the Americas

There is a large unfinished agenda in the integration of the North American economy, a gap which TPP could help fill.

By Uri Dadush and Beatriz Leycegui

Published on Jun 16, 2016

Source: Wilson Center

While the three North American countries, Canada, Mexico, and the United States, together acccount for a large share of TPP GDP and intra-TPP trade, their trade is also already governed by NAFTA. Though NAFTA is a far-reaching and long-standing mega-regional agreement, there is a large unfinished agenda in the integration of the North American economy, a gap which TPP could help fill.

This paper compares TPP and NAFTA as they affect the trade of the NAFTA countries. It will argue that TPP is likely to advance trade of the NAFTA block with the other TPP members, and within the NAFTA block, and make the whole TPP block, including NAFTA, more attractive as an investment destination.

The paper also examines the motivation of NAFTA countries in joining TPP as well as the additionality of market access commitments, followed by an assessment of how the rules negotiated in TPP modify pre-existing NAFTA commitments. Finally, the paper briefly considers how TPP might help promote other crucial interests of the NAFTA countries, including integration in North and South America, and the vitality of the WTO...

This paper originally appeared through the Wilson Center.

About the Authors

Uri Dadush

Former Senior Associate, International Economics Program

Dadush was a senior associate at the Carnegie Endowment for International Peace. He focuses on trends in the global economy and is currently tracking developments in the eurozone crisis.

Beatriz Leycegui

Economy Trade Foreign Policy North America United States South America East Asia Southeast Asia

Carnegie does not take institutional positions on public policy issues; the views represented herein are those of the author(s) and do not necessarily reflect the views of Carnegie, its staff, or its trustees.

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