U.S. and Canada expanding NAFTA?

The North American Free Trade Agreement (NAFTA), which is a trade deal between U.S., Canada and Mexico, is apparently being expanded... at least between us and our Northern brothers... can't say the same for our neighbors to the south. How's that drug cartel business working out for you?

According to Reuters, the new expansion of NAFTA is a trade deal called "The New Border Vision" and it will involve the U.S. and Canada in the process of developing a new trade deal and security that would allow both goods and people to flow more easily when both countries trade.

Isn't it interesting that free trade also allows people to come through the borders more easily, but when you're at an airport, you're hassled constantly by TSA agents?

For those not familiar with NAFTA, this agreement was signed in January, 1994 by President Clinton between all three North American countries and was expanded by President Bush in 2007 with the "Security and Prosperity Partnership", something that did not even receive input from Congress or American voters, nor input from the people of Canada and Mexico.

The basic premise of NAFTA has always been to eliminate virtually all tariffs on bilateral trade between Canada and the United States, and non-tariff trade barriers on goods originating within North America. Despite the fact that it generates a GDP of about $13 trillion, the agreement has more "liberal" rules regarding government procedures, open borders, granting subsidies and imposition of countervailing duties.

The idea of reducing border security just for the simple notion of allowing "free-trade" in North America is pretty frightening, and something that has not been enforced under President Obama's administration. 

There have been critics on both sides of the issue indicating for a long time that the expansion of NAFTA is one step further in establishing a North American Union, much like the European Union and the African Union. Stanley Fischer, a former deputy managing director of the International Monetary Fund at one time stated "As trade relations between Mexico and the U.S. strengthen and as the economies open up to each other, I think having two currencies won't make a great deal of sense."

If only that were true for Mexico. While the U.S. and Canada work together on its relationship involving free trade expansion, it is also in the process of implementing Mexico into that plan, but addressing more serious issues simply because Mexico basically HAS NO economy due to the drug cartel violence. With the new relationship the U.S. is hoping to work out with Mexico, it vows to help "fight crime and develop efficient flow of legal commerce and travel".

On Monday, December 13th, the foreign ministers of all three countries will meet in Canada to discuss the so called "New Border Vision Deal" and further expansion of NAFTA.

We'll see how that works out.