Governance, Trade, and the Environment in the Context of NAFTA

Abstract

The increasing importance of ideas and practices of free trade in the world economy requires a better understanding of the role of trade in creating opportunities for development. This study analyzes new forms of governance created in the context of the North American Free Trade Agreement (NAFTA). It finds that environmental groups' participation in NAFTA's implementation has declined while market actors have become increasingly empowered. The study finds that 8 years after NAFTA's passage there are generally diminished expectations that the agreement's environmental provisions and institutional frameworks will help control negative environmental consequences of increased trade between Canada, Mexico, and the United States. This brings into question NAFTA's reputation as a “green” trade agreement. The narrow and technical interpretation of the NAFTA's provisions has been oriented toward avoiding trade barriers rather than understanding and improving the complex interactions between trade, the environment, and development.