CHALLENGES FOR NAFTA: RENEGOTIATION OR DISINTEGRATION

STAMENIĆ Slavica (Slavica Stamenić, PhD candidate University of Belgrade, Faculty of political sciences), stamenic.slavica@gmail.com
ARNAUTOV Mitko (Mitko Arnaudov, PhD candidate University of Belgrade, Faculty of political sciences), mitko_arnaudov@yahoo.com

Economic cooperation and integration on regional level represent a very attractive phenomenon in the period after World War II. The first examples of such integration we can notice on the European continent between states of the western European hemisphere. If we analyze from the economic point of view, we can draw a conclusion that cooperation between states which are geographically closer is always productive and fulfilled with positive effects for all parties. The North American Free Trade Agreement also represents an example whose main objective was deepening and widening the economic cooperation between the USA, Canada and Mexico. This article represents discussion on the topic of justification of the U.S. President Donald Trump decision to renegotiate NAFTA. It stresses the problem with the equality in free market trade. Although the idea of eliminating trade barriers between aforementioned neighbouring countries should have only positive results, this example of trade liberalization also showed negative impacts. It is primarily because it was not equally accepted and implemented by all partners, during 23 years, but also because of differences in the level of economic development and wage divergence between countries signatories. The authors concluded that there is no doubt that NAFTA should be renegotiated, but it should be transparent and in accordance with a common interest for all three member states.

Keywords: North American Free Trade Agreement, NAFTA, international trade, renegotiation