Canada and Mexico to Join U.S. in NAFTA of the Pacific
Thursday, December 1st, 2011
by Dana Gabriel, BeYourOwnLeader
Dec 1, 2011
At the recent APEC meetings, Canada and Mexico announced their interest in joining the U.S., along with other countries already engaged in negotiations to establish what has been referred to as the NAFTA of the Pacific.
The leaders of the nine countries that are part of the Trans-Pacific Partnership (TPP) met at the Asia-Pacific Economic Cooperation (APEC) summit in Hawaii and agreed on the broad outlines of a free trade agreement. The current members include the U.S., Australia, New Zealand, Malaysia, Vietnam, Singapore, Brunei, Peru and Chile. The TPP has been hailed as a, “landmark, 21st-century trade agreement, setting a new standard for global trade and incorporating next-generation issues.” Key features of the TPP are that it would provide comprehensive market access and be a fully regional agreement designed to facilitate the development of production and supply chains. Various working groups have been discussing issues such as financial services, government procurement, intellectual property, investment, rules of origin, telecommunications and trade remedies. The next round of talks will take place in December and there are hopes of concluding negotiations before the end of 2012. Apart from Canada and Mexico, Japan has also expressed interest in being part of the TPP. The door is also open for other countries to join which is why many consider it to be a building block for an Asia-Pacific free trade zone.
Optimism. More than anything, it was optimism which hung in the air as two thousand people marched through the financial district to St James Park to ‘Occupy Toronto’ this past Saturday. Decamping from the subway to the paved expanse of Commerce Court’s plaza, I was cheered by the sight of a vast crowd that had improbably ventured out on a drizzly mid-October morning. They gathered right at the geographic heart of Canada’s banking center, X marks the spot, King and Bay – it’s not the sort of thing that usually happens in Toronto. But it happened this day, and it was an unprecedented, courageous symbol – watch the video below for a brief walk-though of the day’s events. If nothing else, you had to admire the chutzpah, the obvious joy that was expressed in speaking back to power. And the celebratory mood of the demonstrators was undiminished as they sang and chanted their way up Bay and along Queen to St. James Park, united by a hope that, maybe this time, visibility might drive positive change.
Recent
It was surprising that bilateral relations with the U.S. did not play a more prominent role during the recent Canadian election considering that both countries are pursuing a trade and security agreement. In fact, the issue did not really surface until the dying days of the campaign. After winning a much coveted majority government, Stephen Harper’s Conservatives are moving ahead quickly with perimeter security and regulatory harmonization negotiations. NAFTA and the defunct Security and Prosperity Partnership (SPP) both addressed issues such as regulatory cooperation. The push for a single unified North American business-friendly regulatory regime continues on different fronts.
Canada and the European Union (EU) have already held five rounds of negotiations towards a Comprehensive Economic and Trade Agreement (CETA) which will go beyond NAFTA. With the sixth round of talks scheduled to take place in Brussels, Belgium from January 17-21, Canadian and EU officials remain optimistic that a deal could be finalized by the end of 2011. Thus far, negotiations have included key areas such as goods, rules of origin, services, investment, government procurement, as well as others. As talks enter their final crucial stages, there are growing concerns over the threat CETA poses to Canadian sovereignty. Coupled with the financial turmoil sweeping Europe, deep economic integration with the EU could prove disastrous.
The U.S. is stepping up efforts to gain more influence in Asia-Pacific through participation in more regional institutions and negotiations on the Trans-Pacific Partnership (TPP) trade deal. U.S. foreign policy seeks to shape the future of the region in an attempt to dominate economic, political and security issues.
In recent years, U.S.-Canada border issues have been overshadowed by concerns surrounding illegal immigration and drug violence on the southern border. Earlier this summer, both countries agreed to work towards a more joint approach to border security aimed at addressing common threats and promoting economic cooperation.
Fears that government austerity packages will hinder global growth have combined with fresh anxiety about the health of European banks to hammer investor confidence.