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6.1.1. General|common| description of integration.

An integration |Carin North America developed in the conditions of gradual rapprochement|closing-in| of national economies of the United States|staff| of America, Canada, Mexican United States|staff|. Peculiarities of this process consist pre-conditions|pre-requisite| that were created by private capital, multinational corporations, – TNC – mainly American penetrated in Canadian and Mexican economy.

North-american monopolies control 50% of mining |hf| and more than|more than| 40 % of finishing industry in the Canadian economy. This fact tell us about a close relation of Canadian economy with USA. With other hands USA depends on import of Canadian raw-materials and at the same time Сanada remains an important trade partner of USA.

American investments is over 70% of all foreign investments in Mexico economy mainly in leading industries|branch| of national economy – motor-car, chemical|chinagraph|, electrical engineering etc.

Leading Canadian industries are under influence of American TNC and in North part of Mexico it was created a powerful industrial belt of maquiladoras - industrial areas|zone| with the favourable conditions of enterprise.

The American-Canadian Treaty on 1988 about free trade between countries was a step to the unity of whole continent. Similar negotiations was launched between USA and Mecixo, later Canada joined to this process. | are

The result of negotiations was trilateral North American Free Trade Agreement signed in August 1992, according to which in January 1994 it was launched the process of creation the biggest marked in the world with the area 21 millions km.sq., 370 millions population - potential users|consumer| with the total|sum-total| | GDP $ 6,8 billions|.

The creation of such market was stipulate to end in 2009. The begging of this process means new stage in integration development in the Western hemisphere, and also in a world economy at whole.

Тable 1. North American Free Trade zone

(data on time of trileteral agreement introduction|inp).

USA

Canada

Мexico

1

Population, ml. people

250

26

86

2

GDP, $ milliard.

5,230

463

201

3

GDP per capita, $

20,920

17,808

2,337

4

Area, km.sq.

9,4 ml.

9,97 ml.

1,96 ml.

5

Wages, $ / hour

12,96

10,80

2,09

North American Free Trade zone exceeds many economic|economical| indicators of European Union and with joining to the zone Latin America it’ll become the biggest goods and service market in a world.

6.1.2. Specific features of the North-american free trade zone

Specificity|peculiarit/y| of the North-american free trade zone is characterized|describe| by the following|downstream| items|vinculum|:

  • continental scales of unity: it means the integration of 3 countries with the large territory and great economic potential;

  • the center|heartland| of free trade zone is the United States|staff| – world leader with enormous economic|economical|, scientific|science| and technological potential, competitive economy;

  • foreign|outward| Canadian (74% of all Canadian external trade) and Mexican (65% of all Mexican external trade) trade is orientated to the USA;

  • A north-american free trade zone is almost equidistant from Western Europe and Asiatic-Pacific region which enables evenly to develop economic|economical| relations with both world economic|economical| centers|heartland|;

  • There is the real possibility|potentialitie| of outgrowing|overgrowed| the North-american free trade zone in intercontinental|incontinental| with widing on Central|center| and South America, that is the Unique|single| free trade zone in the Western hemisphere.

Participants of NAFTA| agreed don’t put|stage| common market creation according to the institutional model of Westeuropean standard. It means the creation of free trade zone which give opportunity to participians to develop economic relations with other countries and regions.

Community of interests is the creation|making| of favourable|auspicious| conditions for mutual trade by the gradual decrising/ removing tariff and untariff limitations|limination|, and deepening|vallecula| collaboration in other spheres. Each NAFTA participant has to agree its trade-economic policy with organisation as it’s in EU. It has to be created power structure inside of such organization.

More, it is stipulated the creation of trilateral settle disputes commissions in the field of labour relations and environmental preservation|safety|.

The North American Free Trade Agreement stipulates:

  • stage-by-stage|phase-by-phase|, during|for| 15, duty abolition and untariff limitations|limination| in mutual trade;

  • liberalization of the investment regime including|switch| the grant of financial services;

  • providing|ADM| of high level|Y-level| of intellectual property defence|protection|, development|elaboration| of the common program of fight|wrestlin with environment pollution.

Directions of NAFTA’s activity give us better understanding about first|first-run| stage of integration process|Carbro| in his|its| classic determination|definition|.

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