The Outlier Sectors: Areas of Non-Free Trade in the North American Free Trade Agreement

Jul 2002
Since its entry into force, the North American Free Trade Agreement (NAFTA) has been enormously influential as a model for trade liberalization. While trade in goods among Canada, the United States and Mexico has been liberalized to a significant degree, this most famous of agreements nonetheless contains areas of recalcitrant protectionism. The first part of this paper identifies these "outlier sectors" and classifies them by primary source advocating protectionism, i.e., producer interests or governments themselves. The second part of the paper analyzes the characteristics of each source.