Roads, Trains, and Ports: Integrating North American Transport
Case Synopsis
David Eaton makes a powerful argument for the importance of infrastructure for the future of North American integration, particularly for integrating its poorer member, Mexico, in a future of regional prosperity. He argues that Mexico should focus its resources and energies on improving the competitiveness, the efficiency, the security, and the modernization of its transportation network. By doing so, Mexico can move up the value chain and establish itself as an advanced manufacturing site benefiting from its strategic geographic location, rather than relying on an outdated view that low-wage manufacturing will be its ticket to development.
Eaton, the president of a trade corridor association and a professor at the Monterrey Tech, interviewed over 35 shippers, carriers, and government officials in various Mexican and U.S. cities, and came up with a list of four main recommendations of what needs to be done:
- Continue with Privatizations and More Transparent Concessions
- Improve Regulatory Environment, especially clarify the multiple and overlapping roles of the Transport Ministry (SCT)
- Focus on developing Intermodal Transport, especially containerization
- Assure interoperability of individual transportation modes which Mexico relies upon (Ports, Rail, Highways, and Air Cargo)
Questions for Discussion
Eaton’s piece offers the reader insight into the obstacles to greater regional integration posed by the inequality between the member states – which begs the question of the European strategy of structural funds and the lack of trilateral institutions to fund such key transportation infrastructure that would better connect Mexico (north and south) to the North American regional economy.
Relevant Courses
Apart from courses on NAFTA and North American integration, this essay could bring “North American” content and enhance theoretical discussions in courses in the following subjects:
Political Science
- International Political Economy: Units on trade liberalization and regional economic integration, globalization; particularly useful for discussing how trade and transportation are still closely linked, and how regional economic systems are built via infrastructure and via the political power of interest groups, as well as broader structural contextual variables such as geography or the broader patterns in the national and global economies. Also could be brought into a unit on the Political Economy of Development, looking at Mexico’s choice to join NAFTA, how it has benefited, and its future strategies to adapt to a competitive (i.e., China) global economy.
- Globalization/Global Issues: Transportation and infrastructure are issues that are not looked at closely enough in this area, which tends to focus on how the Internet has made political organizing across borders via “global civil society” possible, challenging more nation-state-bound forms of interest articulation. Eaton’s piece underscores the question of whether free trade leads naturally to a “leveling up,” or whether public sector resources, or public-private partnerships such as trade corridors, are needed to make that happen. It also discusses the issue of regulatory harmonization, which is a politically loaded issue in national contexts where sovereignty and policy autonomy are viewed as sacred values that national governments must protect. This can also play in to a unit on “Whither the Nation-State?” as Eaton’s argument for greater investment in infrastructure belies the idea that the state is withering away, or that there is no efficiency gains to be made from public investment.
- Specialized Courses on Borders and Transborder Studies: Eaton’s piece reinforces the idea that the North American region is integrated in some ways, but in others it is fragmented by geographic borders, and by divisions based upon the great disparity of income levels between the U.S. and Canada, on the one hand, and Mexico, on the other. And yet Eaton assumes that with the proper policies and with the right investments, Mexico can leverage its geographic position to improve its citizens’ economic level, focusing on creating better, advanced manufacturing jobs. Students can ponder, how can this happen for Mexico? How can Mexico compete with the juggernaut of Chinese low-wage manufacturing? Eaton’s piece also suggests integrating Mexico into North America’s transportation networks, but this runs up against the issue of post 9.11 border security – students may be asked to consider these two possibly incompatible imperatives within NAFTA: keeping the border closed to terrorists (and illegal workers), but open for legal commerce. How might the three NAFTA countries view their border to reconcile these two competing goals? Students could investigate what has been done to date, in the Canada-U.S. Smart Border Accord and the Mexican-U.S. Border Partnership.
Suggested Bibliography
Fawcett, Louise and Monica Serrano, eds. (2005). Regionalism and Governance in the Americas: Continental Drift. Basingstoke, UK: Palgrave Macmillan.
Ramsay, Laura (2006). "NAFTA: Failure or Promising Trade Umbrella? Mexico is being left in the dust by China and India, but Canada can still maximize exports there by providing expertise and manufacturing parts." The Globe and Mail, June 15, Pg. B10.
Samuelson, Robert J. (2007). "The End of Free Trade." The Washington Post, December 26, Pg. A21.
United States. Congress. Senate. Committee on Commerce, Science, and Transportation. Subcommittee on Surface Transportation and Merchant Marine (2005). Cross Border Truck and Bus Operations: Joint Hearing before the Subcommittee on Surface Transportation and Merchant Marine of the Committee on Commerce, Science, and Transportation and the Subcommittee on Transportation and Related Agencies of the Committee on Appropriations, United States Senate, One Hundred Seventh Congress, Second Session, June 27, 2002. Washington: U.S. G.P.O..
Suggested Web Resources
Canada-U.S. Border Issues: Canadian Embassy in Washington, DC: http://canada.usembassy.gov/.
U.S.-Mexico Binational Working Group on Homeland Security and Border Cooperation: http://www.state.gov/p/wha/rls/rpt/26208.htm.
From: Study Group on “Mapping the New North American Reality”
In cooperation with the Government of Quebec, the Government of Canada,
The Institute for Research on Public Policy (IRPP), and HEC-Montreal
Montreal, November 2003
Published in: Mapping the New North American Reality, IRPP Working Paper Series 2004-09j
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