NAFTA Superhighways; Comical or Reality?

President Bush proclaims the idea to be "quite comical" while evidence mounts this will be a reality...

by Gary Wood
Last August, during the third annual Security and Prosperity Partnership (SPP) meeting, President Bush denounced the possibility of NAFTA superhighways or a North American Union. "It's quite comical, actually, when you realize the difference between reality and what some people are talking on TV about," was Bush's reply to the question, "Can you say today that this is not a prelude to a North American Union, similar to a European Union? Are there plans to build some kind of superhighway connecting all three countries?"

While President Bush proclaims it comical, just last August, it seems more an effort that will become reality in the near future. Speaking to the Free Trade Alliance of San Antonio earlier this week Eduardo Aspero stated, "Transportation linking the United States, Mexico and Canada is key to the future of NAFTA." Mr. Aspero is the President of the Mexican Intermodal Association. Intermodal transportation allows for the shipment of a container by various means (ships, rails, and trucks) without the need for packing and unpacking of the container.

The Chinese firm of Hutchinson Port Holdings is investing heavily in the development of strategic Pacific Ocean ports in Monzanilla and Lazaro Cardenas, Mexico as deep water ports capable of linking Asian goods to the Americas. "The purpose of ports such as Lazaro Cardenas is to facilitate the cost-efficient transportation of container goods from Asia into the United States," he explained. "Lazaro Cardenas is the new hope for intermodalism in Mexico."

By increasing the capabilities of key ports in Mexico and improving rail and truck transportation between Mexico, the United States, and Canada the overall cost of shipping can be reduced through the increasing use of Mexican labor. With the 2002 U.S. Customs approval of the Automated Manifest System (AMS) it is no longer necessary for containers to be inspected coming across the borders. "AMS allows cargo from Asia to go through Mexican ports virtually without any physical inspection," Aspero explained. "AMS pre-clears cargo at the point of origin, not at the border when the container enters the United States."

All of these actions, and more, indicate real progress in fulfilling Article 102, 1 (a) of the NAFTA agreement. The objective states, "Eliminate barriers to trade in, and facilitate the cross-border movement of, goods and services between the territories of the Parties." Although the creation of the SPP was welcomed by the Council on Foreign Relations their belief is an aggressive plan to institute a North American Community needs to be put in place by 2010.

Some still label those concerned about NAFTA superhighways as conspiracy nuts. Others say opening and extending the borders is no threat to U.S. sovereignty while it improves security, trade, and prosperity between Mexico, the United States, and Canada. President Bush is as honest with the American people on this issue as he has been about the economy and the Iraq war since he clearly has been involved in all the planning over the past several years. The SPP itself is a White House initiative. Whether or not the movement to create NAFTA superhighways threatens sovereignty it clearly is not comical, it is a reality.

2008 by Gary Wood