1. Governance Transfer in the North American Free Trade Agreement (NAFTA)
- Author:
- Francesco Duina
- Publication Date:
- 02-2014
- Content Type:
- Working Paper
- Institution:
- Collaborative Research Center (SFB) 700
- Abstract:
- While NAFTA itself does not contain any provisions for governance transfer, its two side agreements (NAALC, NAAEC) prescribe standards in the realm of human rights (labor, environment), the rule of law, and good governance and create a number of instruments for their (indirect) promotion. Through technical assistance, fora for dialogue and exchange, monitoring, and complaints procedures that can result in monetary sanctions, the side agreements aim at promoting the effective enforcement of national law rather than regional standards. These provisions reflect the same concerns in the United States and Canada that lead to the conclusion of the two side agreements in the first place: creating conditions for fair competition in light of Mexico's failure to effectively enforce national laws, resulting in de facto lower labor and environmental standards and thus lower costs compared to the northern neighbours. Beyond formal governance transfer, NAFTA has had an impact on domestic governance reforms in Mexico since the early 1990s as it was used as leverage in both international negotiations and Mexican domestic politics.
- Topic:
- Economics, International Trade and Finance, and Treaties and Agreements
- Political Geography:
- United States, America, Canada, North America, and Mexico