Francis: NAFTA’s problem is Mexico

Diane Francis, writing in The National Post cites Mexico as the problem with NAFTA.

NAFTA should be amended because circumstances, and the players, have changed since 1989 and 1993, when the bilateral FTA was inked, followed four years later by the trilateral NAFTA.

Frankly, the problem is Mexico.

Her point is simple. Of the three North American Nations, America and Canada are partners. Our two countries economies are large, wages are similar and trade is strong. America’s relationship with Mexico is much different. Though we have a decent trade relationship with Mexico, their economy is much smaller than ours, wage differences are out of this world, and we basically have two very different ways of life.

She goes on:

Three-way trade has been beneficial for all concerned. But Canada’s relationship with the U.S. should be decoupled from Mexico’s so that the two rich neighbours can take the next important step, which is to form a customs union. This would be mutually beneficial, but is not happening because Mexico is not ready for this due to poor governance and deep socio-economic impediments.

When Mexico gets its act together, it can join, along with other hemispheric neighbours who are ready, such as Chile.