Strategic Implications of the North American Free Trade Agreement (NAFTA)

The impending North American Free Trade Agreement with Canada and Mexico will bring changes in the trade patterns of our nation. Although the impact will be greatest on the economy, the agreement will also provide a broadened base of resources and expanded political ties that could have important strategic implications. This paper highlights the importance of NAFTA with respect to national security in the areas of raw materials, labor, industrial capacity, the economy, and military cooperation. It also explores the political impact of trade regionalization driven by NAFTA and similar trade agreements. Recommendations for future trade actions are included in the conclusion.