Syllabus Economics 565

North American Economic Relations

Professor: Jorge E. Mendoza
http://www-rohan.sdsu.edu/~jemendoz/port
Office Hours: by appointment, Office: NH-309
jemendoz@mail.sdsu.edu

Course Objectives

The analysis of the economic integration of the North American region occurs in several dimensions. From that perspective the main objectives of this course are, on one hand, to understand the historical, economic and social characteristics that define the relationship of the countries of the region. In particular, Additionally, we will examine the driving forces behind the implementation of NAFTA and its institutional structure. Finally, the impact of NAFTA on the economic integration of the region will be addressed, focusing on subjects such as trade, investment, labor migration and other economic and social issues.

Required Reading

1. Clement et. al., North American Economic Integration.
2. Pastor, Robert, Toward a North American Community.
3. Schott, Jeffrey, Prospects for Free Trade in the Americas.
4. Hufbauer, Gary C., et al, NAFTA and the Environment Seven Years Later
5. Chambers, et al, NAFTA in the New Millenium
6. A reader is available for purchase at Cal Copy on College Avenue.
7. Selected Readings on the Internet

Readings 2 to 4 are available to read online at www.iie.com

Grading Policy

Students grades will be based upon the performance and scores in the following areas:

Two midterms…………………........……..30%
Final Examination.…………………......….30%
Term paper…………………………………25%
Quizzes and Assignments ........….…….......15%

Grades are based on the following scale: 90%-100% is in the A range, 80%-90% is in the B range, 60%-80% is a C, and 50%-59% is a D.

Important Dates

Midterm 1: October 2
Midterm 2: November 6
Paper proposal due: October 16
Paper outline/draft due: November 13
Final draft of paper due: December 11

Make-ups and missed exams

No make-up exams, late exams or papers will be allowed except under extraordinary circumstances.

Course Outline

1. International Economic Integration and NAFTA

What economic forces are behind economic integration? The pros and cons of free trade. What types of trade agreements exist?

Clement, Part1, pages 1-103
Warf and Kull, “Tepid Traders: US Public Attitudes” on NAFTA in the New Millenium. pages 213-238

2. The Forces Behind NAFTA

This section looks at the conditions in Canada, US and Mexico that led them to agree to a free trade area.

Clement, Part 3, pages 253-277
Norrie and Owran, “NAFTA and Canada, The Interlink Economic Policy and National Symbolism” on NAFTA in the New Millenium. pages 83-104

3. Issues Addressed by NAFTA

A look at NAFTA’S provisions. The analysis of issues addressed in the agreement is important for understanding its scope and limitations.

Hufbauer and Schott, NAFTA an Assessment.Revised Edition. Appendix, An Evaluation of NAFTA.
North American Free Trade Agreement. NAFTA Secretariat: http://www.nafta-sec-alena.org/english/index.htm
Ortiz Mena, “Dispute Settlement under NAFTA”, on NAFTA in the New Millenium . pages 425-446

4. NAFTA Economic Performance by Countries and Regions

A sectoral analysis of the regional impact of NAFTA on the different economic sectors and activities.

Jose Luis Valdes, “NAFTA and Mexico: Sectoral Analysis”, on NAFTA in the New Millenium, pages 61-82.
Gerber, “Different States, Similar Responses: California, Texas, and NAFTA”, on NAFTA in the New Millenium, pages 147-166.

5. The Environment

A useful environmental assessment of NAFTA from the leading think tank on international economic issues.

Hufbauer, et al., “NAFTA and the Environment: Seven Years Later”

6. The US-Mexico Border

The US-Mexico border is one the most dynamic and interesting regions that has been affected by NAFTA. Feinberg, 2001, “San Diego, Baja California, and Globalization”.
Available: www.pacificcouncil.org.

7. Trucking

The issue is one of the unsolved disputes under NAFTA, and it resolution will be an indicator of the future integration of US and Mexico.

Prentice and Ojah, “Transportation: Bottlenecks and Possibilities”, on NAFTA in the New Millenium, pages 331-358.
General Accounting Office, “North American Free Trade Agreement: Coordinated Operational Plan Needed to Ensure Mexican Trucks’ Compliance with US Standards”, Report: GAO-02-238. December 21, 2001. Online at http://www.gao.gov/new.items/d02238.pdf

8. Can NAFTA be Deepened? Should it be?

Political Scientist Robert Pastor outlines what North Americans might learn from Europeans in terms of Economic Integration.

Pastor, “Toward a North American Community,” Institute for International Economics.

9. The Free Trade Area of the Americas

Negotiations are scheduled to wrap up in 2005. What are the possibilities of such a continental agreement?

Schott, Jeffrey, Prospects for the Free Trade in the Americas, Institute of International Economics.

Email: emendoza@colef.mx and jemendoz@mail.sdsu.edu