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NAFTA's uninvited guest: China and the disintegration of North American trade

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  • Dussel Peters, Enrique
  • Gallagher, Kevin P.

Abstract

This paper examines the extent to which China's entry into the World Trade Organization (WTO) in 2001 and subsequent surge in global exports affected the composition of trade between the United States and Mexico through 2009. The authors found that China's entry had a significant impact on the trade relations between these two North American countries, replacing and displacing many of the export strongholds in place before China joined the WTO and after the first stage of the North American Free Trade Agreement (NAFTA) (1994-2000). Based on this research, the authors offer a variety of policy options for reinvigorating United States- Mexico trade and cooperating with China in the global economy.

Suggested Citation

  • Dussel Peters, Enrique & Gallagher, Kevin P., 2013. "NAFTA's uninvited guest: China and the disintegration of North American trade," Revista CEPAL, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL), August.
    • Handle: RePEc:ecr:col070:37000
    Note: Includes bibliography.
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    References listed on IDEAS

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    1. Kehoe, T.J., 1992. "Assessing the Economic Impact of North American Free Trade," Papers 265, Minnesota - Center for Economic Research.
    2. Sanjaya Lall & John Weiss & Hiroshi Oikawa, 2005. "China's Competitive Threat to Latin America: An Analysis for 1990-2002," Oxford Development Studies, Taylor & Francis Journals, vol. 33(2), pages 163-194.
    3. Erzan, Refik & Yeats, Alexander, 1992. "Free trade agreements with the United States : what's in it for Latin America?," Policy Research Working Paper Series 827, The World Bank.
    4. Gallagher, Kevin P. & Moreno-Brid, Juan Carlos & Porzecanski, Roberto, 2008. "The Dynamism of Mexican Exports: Lost in (Chinese) Translation?," World Development, Elsevier, vol. 36(8), pages 1365-1380, August.
    5. Robert C. Feenstra & Hiau Looi Kee, 2007. "Trade Liberalisation and Export Variety: A Comparison of Mexico and China," The World Economy, Wiley Blackwell, vol. 30(1), pages 5-21, January.
    6. Gary Clyde Hufbauer & Jeffrey J. Schott, 2005. "NAFTA Revisited: Achievements and Challenges," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 332, January.
    7. Mary E. Burfisher & Sherman Robinson & Karen Thierfelder, 2001. "The Impact of NAFTA on the United States," Journal of Economic Perspectives, American Economic Association, vol. 15(1), pages 125-144, Winter.
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    Cited by:

    1. Timothy Halliday & Daniel Lederman & Raymond Robertson, 2018. "Tracking wage inequality trends with prices and different trade models: evidence from Mexico," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 154(1), pages 47-73, February.
    2. Gandolfi, Davide & Halliday, Timothy J. & Robertson, Raymond, 2014. "Globalization and Wage Convergence: Mexico and the United States," IZA Discussion Papers 8254, Institute of Labor Economics (IZA).
    3. Davide Gandolfi & Timothy Halliday & Raymond Robertson, 2017. "Trade, FDI, migration, and the place premium: Mexico and the United States," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 153(1), pages 1-37, February.
    4. Davide Gandolfi & Timothy Halliday, 2014. "Globalization and Wage Convergence: Mexico and the United States," Working Papers 2014-4, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    5. Robert A. Blecker, 2015. "Integration, Productivity, and Inclusion in Mexico: A Macro Perspective," Working Papers 2015-06, American University, Department of Economics.
    6. Davide Gandolfi & Timothy Halliday & Raymond Robertson, 2014. "Trade, Migration, and the Place Premium: Mexico and the United States," Working Papers 201425, University of Hawaii at Manoa, Department of Economics.
    7. Escaith, Hubert, 2021. "Revisiting constant market share analysis: An exercise applied to NAFTA," Estudios y Perspectivas – Sede Subregional de la CEPAL en México 47123, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).

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