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Tracking NAFTA's Shadow 10 Years on: Introduction to the Symposium
Authors:Lederman  Daniel; Serven  Luis
Institution:Daniel Lederman is a senior economist in the Development Research Group at the World Bank; his email address is dlederman{at}worldbank.org.
Abstract:The North American Free Trade Agreement (NAFTA) is arguablythe first "case study" of what might be expected from the increasingnumber of preferential trade agreements involving both developedand developing economies. Ten years after the treaty’sinception, it is time to assess how its outcomes compare withinitial expectations. The articles in this symposium issue provideinsights into the effects of NAFTA on economic geography, trade,wages and migration, and foreign investment from Mexico’sperspective. The contributions paint a complex post-NAFTA realitycharacterized by persistent intrabloc trade barriers, interregionalinequality within Mexico, labor market outcomes that seem closelytied to migration patterns and international trade and investment,and foreign investment flows that appear weakly related to tradeagreements. NAFTA seems to be the first trade agreement in historyfor which the traditional static trade creation or diversioneffects are likely negligible—and hard to identify inany case.
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