Leak gives more details on EU-like North America

tde_north_america_high_rez Pictures, Images and Photos A few months ago, President Obama and Prime Minister Harper announced plans to look at making North America more closely integrated. However, as reported by the Financial Post (click here to read it), a leaked cable via WikiLeaks suggests that the idea has been seriously discussed since 2005. It also gives some more details on it. Things like a single currency (USD) and a single tariff policy for all three NAFTA countries are some of the changes that would take place.

The plan would not include changes to all three countries in the exact same way. The U.S. and Canada would have more shared policies than Mexico since the two countries are as close as any two countries are in terms of their economies, society and other aspects. For instance, obtaining a work permit between the U.S. and Canada would be much quicker than is currently the case.

Although I like this proposed plan in theory, there are two very important factors that need to be looked at very closely. First, studies need to take place to see what the economic benefit/drawbacks would be after all these changes. Second (and maybe more importantly), the main premise for the changes should be for economic reasons, not security enhancements. At the end of the day, the best security to any country is a stronger economy. Terrorism is far too small of a factor to be the focal point of such major changes. Each policy change should only take place if it improves the countries’ economies.

In order to compete in the 21st century, North America will need to come together to reach a large enough combined population. China, India and even the EU have more people than the United States and in order to compete they need to have a larger population (economies of scale). This initiative will do that for the continent and this is very important. It will take years for this initiative to come to fruition, but if done properly, the U.S., Canada and Mexico will be better for it.