The Case For NAFTA

Policy Backgrounders | Trade

No. 130
Monday, November 15, 1993
by Edward L. Hudgins, Ph.D.


If America Rejects NAFTA, Will Japan Step In?

If America rejects NAFTA, it may not remain the economic leader in a poverty-stricken hemisphere. In today's integrated world economy, bolder competitors likely will move into the position that should belong to the United States.

"If U.S. policymakers do not approve NAFTA, Mexico's partner of choice almost certainly will be Japan."

Incentives for Mexican-Japanese Cooperation. Japanese policymakers have long followed a strategy of getting in on the ground floor of fast-growing economies. Japan is quite interested in Mexico, and Mexico needs closer economic ties with a large, relatively prosperous economy. So if U.S. policymakers do not approve NAFTA, Mexico's partner of choice will almost certainly be Japan.


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