Publication Number: 3527

Report Title: International Economic Review: A Decomposition of North American Trade Growth Since NAFTA; Closer Integration between Canada and the United States?

Author's name(s): Russell Hillberry, Christine McDaniel, Tom Jennings

Date Published: June 2002

Report Description/Introductory Text: “A Decomposition of North American Trade Growth Since NAFTA” discusses U.S. trade with NAFTA partners, which increased 78 percent in real terms between 1993 and 2001, compared to 43 percent with the rest of the world. Analyzing the composition of this growth provides insights into whether the United States is trading more of the same goods with NAFTA partners, trading new products, or upgrading the quality and variety of products. Quality upgrading and variety upgrading is shown to explain a part of U.S.-Mexico trade growth.

Can there be a “Closer Integration between Canada and the United States?” A once politically unmentionable concept in Canada is receiving attention in light of the increased awareness of interdependence between the two North American trading partners, following hard upon the concerns over border issues and security after the terrorist attacks in the United States on September 11, 2001.

Topics Covered: USITC, North American Free Trade Agreement, NAFTA, United States-Canada Free-Trade Agreement (CFTA), Hummels-Klenow methodology, anti-terrorism

Countries: United States, Canada, Mexico

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