COLUMN: There Are Important Political Implications to Economic Integration
We often hear of free trade agreements and plans for economic integration between nations. Examples are NAFTA, CAFTA, FTAA, the Trans-Atlantic Economic Partnership (TEP) and the European Economic Community, the predecessor of the EU.
These plans all call for greater economic integration between the nations involved. A great deal of progress is being made to “deepen” economic integration in the Western Hemisphere, between the U.S. and Europe, and in other parts of the globe.
The term “economic integration” seems to imply a mere integration of the economy of different nations. At the surface, this may seem to be fairly harmless. However, there are many changes that need to be made in the political structures of involved nations in order to carry out this economic integration.
In 1998, Glen Atkinson, professor of economics at the University of Nevada, wrote an article in the Social Science Journal titled “Regional Integration in the Emerging Global Economy.” In this article, he wrote of processes that need to occur to achieve economic integration. After describing some of these processes, he explained, “Each of these moves calls for positive policies requiring institutional development which is what is meant by the deepening of integration.”
Another term used for the process of the deepening of integration is “positive integration.” Peter Robson, in “The Politics of International Integration,” defines “positive integration” as “the modification of existing instruments and institutions, and the creation of new ones.”
One example of economic integration resulting in the creation of new agencies is NAFTA. NAFTA created three commissions and a host of committees and councils to enforce the so-called “free trade agreement.”
The creation of new institutions is only a symptom of a larger problem – the loss of a nation’s political sovereignty. Stephan Haggard, in “Developing Nations and the Politics of Global Integration,” wrote, “Cross-border economic integration and national political sovereignty have increasingly come into conflict, leading to a growing mismatch between the economic and political structures of the world.”
So why should citizens be concerned if their nation is in danger of losing its political sovereignty? In the same book, Haggart explained that “the core of the idea of political sovereignty is to permit national residents to order their lives and property in accord with their own preferences.” Americans should take note of this – if the U.S. loses its political sovereignty, Americans stand in danger of losing their freedom.
In the article mentioned above, Atkinson explained the steps taken in economic integration. He also discussed the possible consequences of that integration. He explains, “The lowest level of integration is a free trade area which involves only the removal of tariffs and quotas among the parties. If a common external tariff is added, then a customs union has been created. The next level, a common market, requires free movement of people and capital as well as goods and services. It is this stage where institutional development becomes critical. The stage of economic union requires a high degree of coordination or even unification of policies. This sets the stage for political union.”
Atkinson could have easily been discussing the trends taking place in North America. NAFTA has already created a free trade area. Policy makers are calling for a common external tariff, as well as the free movement of goods, people, services and capital between the U.S., Canada and Mexico. Atkinson clearly stated where these steps lead – to a political union.
One thing Atkinson did not mention is the creation of a common currency, which some experts feel is necessary to create the common market Atkinson mentioned.
The steps Atkinson discussed have been followed in Europe, with the consequences he predicted. They are also being followed in the U.S. – with the same end in mind.
Colby Lyons is a senior majoring in law and constitutional studies. Comments can be sent to him at c.lyons@aggiemail.usu.edu