North American Trade Corridors: An Initial Exploration
Case Synopsis
This case compiles a plethor of useful information regarding the North American "trade corridor movement," which the author contends goes beyond the mere physical construction of transportation linkages to encompass "strategies developed by groups of business and municipal (and sometimes state and even federal) government leaders to attract to particular regions some of the increased flow of materials generated by deepening North American economic integration."
The case outlines the history of trade corridors as a response to these structural processes of "deep integration" (such as continental distribution and supply chain organization); the main players (organizations, governments, coalitions, and entrepreneurs); and the variations on the trade corridor theme which have emerged (public-private vs. private; linear vs. regional; established vs. visionary).
In his final analysis, Blank highlights the "entrepreneurial imagination" involved in the trade corridor movement, but questions the rationality of a "bottom-up" approach, which leaves localities competing with one another for funding. This non-strategy creates multiple (and often overlapping) regional projects rather than an integrated continental transportation system which might maximize regional development (including job creation and environmental sustainability) and continental competitiveness.
Educational Objectives
Aside from its salience for the study of "deep" or "structural" integration within the context of regional economic integration (North America, Europe, Latin America, Asia), this case illustrates much about transportation policymaking in the U.S., highlighting lack of Federal government coordination leading to local responses to funding, opportunities and broader economic forces.
Courses focusing on state and local government, or business-government relations, would use this case to discuss the interaction of levels of government, and the complexity of "governing" a regional economy in the absence of supranational institutions.
Similarly, international management courses which discuss "clusters" and other functional concepts of production and distribution location can analyze specific trade corridor initiatives from the point of view of the firm.
Teaching Plan
The case makes an analytical argument, but it also provides good empirical information for students to begin a comparative analysis of the strategies of business and governmental actors across specific regional contexts mentioned. The case can be used to start class discussion regarding the motivations of actors, the absence of coordinated continental transportation strategy, and the future prospects for trade corridors.
It can also be used as the background document to launch individual or group research projects looking more deeply at specific dimensions of the trade corridor movement, such as highway construction, regional economic development, energy grid integration, environmental impact assessment and "sustainability" planning, border infrastructure modernization, types of agreements between states and across national borders between subnational units, etc.
Another compelling way to illustrate the dynamics at work in this case would be to run a simulation of a meeting among various actors (public sector, private sector, civil society) considering a trade corridor. The instructor might assign groups to model specific regional coalitions described in the case (PNWER; Atlantica; Great Lakes), or s/he might ask the students to generate their own possible corridors. In both cases, individuals in groups can be assigned specific roles corresponding to the actors outlined above. These committees would then put together a briefing paper for this meeting outlining the potential costs and benefits of a trade corridor.
Questions for Discussion
1. Towards the end of the case, the author critiques the "bottom-up" approach to transportation planning in the North American region, arguing that all of the NAFTA highways add up to little more that "a plate of spaghetti." The natural comparison is to the European Union, which has dedicated organizational and financial resources to create a European system of roads and, to some extent, rail. However, for a variety of reasons, regional integration initiatives in North America have rejected more institutionalized cooperation.
What might be the advantages of a more "bottom-up" approach? Why might local actors want less, rather than more, oversight from a central authority when devising economic development plans?
2. Can trade corridors be made compatible with values such as environmental protection? What kinds of policies or safeguards are needed to advance both?
3. Recently, opponents of North American integration on the American right have decried the "NAFTA Superhighway" as proof of the U.S. government abdicating sovereignty to big business and foreign governments. Why is business viewed as the enemy? What might proponents of trade corridors in the private and public sector say and do to allay these fears?
4. Discussions of "North American competitiveness" among business and government leaders in recent years have centered on China and competition from Asia. How might the trade corridor movement contribute to a broader strategy along those lines?
Relevant Courses
This case would be appropriate for a variety of courses in Political Science, such as American government, Canadian government, state and local government, municipal government, policy studies (transportation in particular), border studies, and environmental studies. Courses in comparative regional integration that look at the European Union's transportation policy could use this case as a comparison. The case would also complement materials on business-government relations and cross-border supply chains within courses on international business.
Useful Links from PNA
- An Economic Plan for the Commonwealth: Unleashing the Assets of Metropolitan Pennsylvania
- A Survey of Major Cross-Border Organizations Between Canada and the United States
- Canadian Direct Investment in Western New York: A Tracking Study of Subsidiaries and Parent Companies
- Do Cross-Border Regions Matter for Trade - Canada-U.S. Border Effects and Cross-Border Reports
- Mapping the New North American Reality: The Road Sector
- North American Integration in Agri-Food
- North American Integration - The Emergence of Cross-Border Regions
- Plugged into North America: Hydro-Quebec in an Integrated Continental Energy Sector
- Quebec-New York Trade Corridors Initiatives
- Responding to the NAFTA Challenge: Ontario as a North American Region-State and Toronto as a Global City-Region
- Six Ways Cities Can Reach Their Economic Potential
- The Emergence of Cross-Border Regions Between Canada and the U.S.
- The Role of Subnational Governments in the Governance of North America
- The Vital Center: A Federal-State Compact to Renew The Great Lakes Region
- Toward North American or Regional Cross-Border Communities: A Look at Economic Integration and Socio-Cultural Values in Canada
Suggested Bibliography
Banister, David, et. al. (2000). European Transport Policy and Sustainable Mobility. London, New York: Spon Press.
Blank, Stephen and Jerry Haar (1998). Making NAFTA Work: U.S. Firms and the New North American Business Environment. Miami, FL: North-South Center Press, University of Miami.
Friedman, Kathryn (2007). "Domestic Institutions and Subnational Autonomy under NAFTA: Policy Implications of Conceptualizing the Greater Golden Horseshoe Area as a Cross Border Region." Paper Presented at the Annual Meeting of the International Studies Association.
Fry, Earl H. (1998). Expanding the Role of State and Local Governments in U.S. Foreign Affairs. New York: Council on Foreign Relations Press.
VanNijnatten, Debora L. (2004). "Canadian-American Environmental Relations: Interoperability and Politics." American Review of Canadian Studies Winter 34(4): 649-664.
Warner, Mildred and Jennifer Gerbasi (2004). "Rescaling and Reforming the State under NAFTA: Implications for Subnational Authority." International Journal of Urban and Regional Research December 28(4): 858-873.
Suggested Web Resources
Atlantica: The International Northeast Economic Region: http://www.atlantica.org/.
Border Trade Alliance (BTA): http://www.thebta.org/?PHPSESSID=53a5ebac85d64aafdd577e631cfb3d9e.
Canadian/American Border Trade Alliance: http://www.canambta.org/.
Canadian-American Business Council (CABC): http://s247391332.onlinehome.us/1.html.
CANAMEX Corridor Coalition: http://www.canamex.org/.
Cascadia Project: http://www.cascadiaproject.org/.
Central North American Trade Corridor Association (CNATCA): http://www.tradecorridor.net/.
Council of Great Lakes Governors: http://www.cglg.org/.
Gulf of Mexico States Accord (GOMSA): http://www.gomsa.org/.
Gulf of Mexico States Partnership, Inc.: http//www.gulfofmexicostatespartnership.com/.
International Mobility and Trade Corridor Project (IMTC): http://www.wcog.org/Border.aspx.
Kansas City, MO-Mexico Business Development Corporation: Mexiplex: http://www.kcmo.org/international/mexiplex.htm.
Maritime Administration, U.S. Department of Transportation (MARAD): http://www.marad.dot.gov/.
New England-Canada Business Council: http://www.necbc.org/.
North American Transportation Competitiveness Research Council: http://www.natcrc.org/.
North America's SuperCorridor Coalition, Inc. (NASCO): http://www.nascocorridor.com/.
Northern Great Plains, Inc. (NGP): http://www.ngplains.org/.
Northwest Corridor Development Corporation (NCDC): http://www.nwcorridor.com/.
Pacific Corridor Enterprise Council (PACE): http://www.pacebordertrade.org/.
Pacific Northwest Economic Region (PNWER): http://pnwer.org/.
Portland/Vancouver I-5 Transportation and Trade Partnership: http://www.i-5partnership.com/reports/q3.html.
Ports-to-Plains Trade Corridor: http://www.portstoplains.com/.
Transportation Equity Act for the 21st Century, Summary: http://www.fhwa.dot.gov/tea21/sumcov.htm.
West Coast Corridor Coalition (WCCC): http://www.sandag.org/index.asp?projectid=315&fuseaction=projects.detail.
Note: PNA is committed to encouraging intelligent discourse among our members. Comments are moderated by PNA, in accordance with the PNA Comment Policy. PNA does not necessarily endorse any of the views posted below.
1 Comment
Each Teaching Note is geared towards a variety of disciplines and can benefit from feedback by instructors.
Please help enhance this Teaching Note - to share with the community how you've used this resource and what teaching methods were most effective, we invite you to become a member of Portal for North America.
