The NAFTA Promise and the North American Reality The Gap and How to Narrow It By Frank Graves, Robert Pastor and Miguel Basáñez Presentation to the Center for North American Studies (CNAS) & the Institutions, Law and Security Center (ILSC) October 31, 2013 ‹#› Copyright 2013. No reproduction without permission. Outline Methodology Part 1 By Frank Graves 1. Reciprocal Images and Willingness to Trade 2. A Dramatically Altered Economic Outlook Part 2 By Miguel Basáñez 3. Borders and Security: A Changing Mix Part 3 By Robert Pastor 4. North Americans Give Preference to North America on Trade Policy over Asia and Europe 5. All Three Countries Prefer Trilateral Cooperation on Domestic & Transnational Issues over Developing Independent Policies Preliminary Conclusions ‹#› Copyright 2013. No reproduction without permission. Methodology ‹#› Copyright 2013. No reproduction without permission. Methodology This research involved three separate surveys conducted in the United States, Mexico, and Canada: • United States: This survey was conducted using Knowledge Networks’ probability-based online panel, KnowledgePanel. In total, 1,600 U.S. residents ages 18 and over (including an oversample in states bordering Canada and Mexico) responded to the survey. The margin of error is +/- 2.5 percentage points, 19 times out of 20. • Canada: This survey was conducted using EKOS’ probability- based, hybrid online/telephone research panel, Probit. In total, 1,505 Canadian residents ages 18 and over responded to the survey (1,200 online, 305 by phone). The margin of error is +/2.5 percentage points, 19 times out of 20. • Mexico: This survey involved face-to-face interviews with a random sample of 1,320 Mexican residents ages 18 and over (including an oversample in states along the U.S. border). The margin of error is +/- 2.7 percentage points, 19 times out of 20. ‹#› Copyright 2013. No reproduction without permission. Part 1 By Frank Graves 1. Reciprocal Images and Willingness to Trade ‹#› Copyright 2013. No reproduction without permission. Reciprocal Images and Willingness to Trade » How do we see each other? • All three publics have very positive views of each other, although American favorable views of Mexico have declined lately • U.S. views of Mexico have historically been favorable, although they have become somewhat less so over the past few years, perhaps due to drug-related violence (1) » Where do we identify? • U.S. and Canada strongly nationalist, Mexico more local (like Europe) » Canada and Mexico score fairly well in terms of basic knowledge, but United States overestimates importance of Asia and underestimates importance of North America (1) Beginning in 1974. The Chicago Council on global affairs conducted surveys of the opinions of Americans towards the world every two to four years. For more details, see Pastor, Robert, “The North American idea a vision of a continental future”, pp. 60. Oxford ‹#› New York: Oxford University Press, USA, 2011. Print. Copyright 2013. No reproduction without permission. Reciprocal images Q. In general, would you describe your opinion of the United States / Canada / Mexico as favorable or unfavorable? American views of… 7 5 7 Canada Mexico 17 25 72 41 28 Canadian views of… The United States 1 28 28 Mexico 2 18 53 27 43 Mexican views of… The United States Canada 3 6 0 DK/NR 26 11 19 52 17 20 Unfavorable (1-3) 65 40 60 80 Neither (4) 100 Favorable (5-7) ‹#› BASE: October 2013, US (n=1,600); Canada (n=1,505); Mexico (n=1,320) Copyright 2013. No reproduction without permission. Tracking support for trilateral trade Q. Please rate the extent to which you agree or disagree with the following statement: There should be free trade between the U.S., Canada and Mexico 100 % who AGREE 80% 74% 65% 80 60 40 20 0 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013 ‹#› BASE: October 2013, US (n=1,600); Canada (n=1,505); Mexico (n=1,320) Copyright 2013. No reproduction without permission. 2. A Dramatically Altered Economic Outlook ‹#› Copyright 2013. No reproduction without permission. A dramatically altered economic outlook » A darkening outlook (Canada and the United States) » Sense of stagnation, perhaps decline (Canada and the United States) » Canada dark about future / America bleak » Shrinking middle class in the United States and Canada » Can a more active pursuit of the North American agenda expand the middle class? ‹#› Copyright 2013. No reproduction without permission. Perceived changes in quality of life Q. Thinking about your overall quality of life, would you say that you are better off, worse off, or about the same as the previous generation was 25 years ago? 11 3 38 22 31 5 29 25 42 46 18 31 Q. Thinking about your overall quality of life do you think the next generation will be better off, worse off, or about the same as you are 25 years from now? 13 58 3 20 54 6 0 DK/NR 30 42 20 9 12 23 40 Worse off 29 60 80 About the same 100 Better off ‹#› BASE: October 2013, US (n=1,600); Canada (n=1,505); Mexico (n=1,320) Copyright 2013. No reproduction without permission. Tracking middle class Q. Would you describe you and your household as poor, working class, middle class, or upper class? 70 % who say MIDDLE CLASS 62% 60 50 46% 40 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 ‹#› BASE: October 2013, US (n=1,600); Canada (n=1,505); Mexico (n=1,320) Copyright 2013. No reproduction without permission. Part 2 By Miguel Basáñez 3. Borders and Security: A Changing Mix ‹#› Copyright 2013. No reproduction without permission. Borders and security: a changing mix » Security is still important in the United States, but it has declined over the last decade » Mexico is now much more concerned about freedom of movement • This has vaulted to top border concern » Canada no longer focuses on security » U.S. supports common border policies to both Canada and Mexico » All three countries now support a common security perimeter, particularly Mexico ‹#› Copyright 2013. No reproduction without permission. Most important border consideration Q. In discussions about the U.S.-Canada border, which of the following do you think should be the most important consideration? 17 2 46 30 6 24 15 26 15 18 Q. In discussions about the Mexico-U.S. border, which of the following do you think should be the most important consideration? 2 0 25 5 20 45 40 23 60 80 DK/NR Security & Safety National sovereignty & Identity Freedom of movement Economic advantage BASE: October 2013, US (n=1,600); Canada (n=1,505); Mexico (n=1,320) 100 ‹#› Copyright 2013. No reproduction without permission. Sovereignty as a border priority Q. In discussions about the U.S.-Canada / U.S.-Mexico border, which of the following do you think should be the most important consideration? 30 % who say NATIONAL SOVEREIGNTY AND IDENTITY 24% 20 10 6% 5% 0 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 ‹#› BASE: October 2013, US (n=1,600); Canada (n=1,505); Mexico (n=1,320) Copyright 2013. No reproduction without permission. Support for common security perimeter Q. Given recent events would you support or oppose the United States, Canada, and Mexico establishing a common security perimeter (i.e., around all of North America)? 13 20 4 4 0 DK/NR 35 19 26 41 19 43 15 20 Oppose (1-3) 62 40 60 80 Neither (4) 100 Support (5-7) ‹#› BASE: October 2013, US (n=1,600); Canada (n=1,505); Mexico (n=1,320) Copyright 2013. No reproduction without permission. Part 3 By Robert Pastor 4. North Americans Give Preference to North America over Asia and Europe for Both Tactical and Strategic Reasons ‹#› Copyright 2013. No reproduction without permission. Preferred trading partner Q. To which of the following partners do you believe the United States/Canada/ Mexico should be giving highest priority in negotiating freer trade agreements? 32 36 32 North America 12 The European Union 30 21 15 11 China 3 India None of the above 0 30 6 5 8 11 7 10 20 30 40 50 60 70 ‹#› BASE: October 2013, US (n=1,600); Canada (n=1,505); Mexico (n=1,320) Copyright 2013. No reproduction without permission. Using integration to remain competitive Q. Please rate the extent to which you agree or disagree with the following statement: In order to remain competitive with rising economic regions (including Asia and Europe), the United States, Canada and Mexico should more closely to collaborate on unifying their policies in dealing with these regions. 18 5 4 0 DK/NR 11 20 26 15 51 18 51 11 20 Disagree (1-3) 70 40 60 80 Neither (4) 100 Agree (5-7) ‹#› BASE: October 2013, US (n=1,600); Canada (n=1,505); Mexico (n=1,320) Copyright 2013. No reproduction without permission. Best approach to negotiations with Asia and EU Q. What do you think is best: collaboration and a unified approach with our other two North American neighbors in advance of trade and economic negotiations with Asia and the European Union or each country negotiating on its own? 41 29 30 41 52 7 50 45 6 0 10 20 30 40 50 60 Collaboration and a unified approach Each country negotiating on its own DK/NR BASE: October 2013, US (n=1,600); Canada (n=1,505); Mexico (n=1,320) 70 ‹#› Copyright 2013. No reproduction without permission. 5. North Americans Prefer Trilateral Collaboration ‹#› Copyright 2013. No reproduction without permission. North Americans prefer trilateral collaboration » All three countries prefer trilateral collaboration across domestic and transnational issues over developing independent national policies • Environment and borders are given highest priority for more integration • Some erosion in other areas: defense, currency, economy and – somewhat surprisingly – energy » They fear that a lack of cooperation will harm their standard of living more than a diminution of sovereignty • “Sovereignty” not a crucial issue in the United States, Canada, or Mexico » They feel their governments are not doing enough to foster cooperation or deepen integration in North America ‹#› Copyright 2013. No reproduction without permission. Support for three-way policy integration Q. There are a number of social and economic issues that the U.S., Canada and Mexico deal with which overlap and impact the other countries. In the future, would you like to see the U.S., Canada and Mexico develop policies independently of each other or develop integrated policies in each of the following areas? Environ. quality 19 18 25 39 2 23 17 Border security 17 24 20 39 2 25 Econ. policy Defense policy Energy policy Currency DK/NR 19 27 20 31 20 25 20 44 27 25 28 4 47 23 26 2 43 31 4 38 24 21 15 4 Independent (1-3) 58 48 24 24 23 67 2 26 10 62 3 19 6 73 26 4 34 10 52 31 4 39 50 36 4 45 7 9 13 17 7 34 12 Somewhat integrated (4) 42 48 Integrated (5-7) ‹#› BASE: October 2013, US (n=1,600); Canada (n=1,505); Mexico (n=1,320) Copyright 2013. No reproduction without permission. Effectiveness of cooperation Q. Overall, do you think that (the United States / Canada / Mexico) would be more effective in dealing with issues such as economic policy, immigration, transportation, energy, defense and climate change if it co-operated with (other North American nations), or should the United States / Canada / Mexico develop and implement its own policies? 42 38 21 41 54 5 49 46 5 0 10 20 30 40 50 60 70 The United States / Canada / Mexico should cooperate with (other North American nations) The United States / Canada / Mexico should develop and implement its own policies DK/NR BASE: October 2013, US (n=1,600); Canada (n=1,505); Mexico (n=1,320) ‹#› Copyright 2013. No reproduction without permission. Impact of cooperation on sovereignty Q. Which of the following two statements comes closest to your own point of view? 48 16 36 52 33 15 53 38 10 0 10 20 30 40 50 60 70 A lack of cooperation with our North American neighbors will result in a worsening of our standard of living and our nation’s security Our sovereignty is undermined or compromised by increasing cooperation with our neighbors DK/NR BASE: October 2013, US (n=1,600); Canada (n=1,505); Mexico (n=1,320) ‹#› Copyright 2013. No reproduction without permission. Are gov’ts doing too little or too much on NA? Q. Do you think our government is doing too much, just enough or too little to seek greater cooperation with our neighbors on these transnational issues? 10 35 19 36 35 33 14 18 8 0 Too little 35 48 10 10 20 30 Just enough 40 50 60 Too much 70 DK/NR ‹#› BASE: October 2013, US (n=1,600); Canada (n=1,505); Mexico (n=1,320) Copyright 2013. No reproduction without permission. Should gov’ts do more to foster collaboration? Q. Would you like your government to play a more active or a less active role in promoting more collaborative policies with our neighbors? 16% less active 26 6 10 45 23% less active 13 7 16 DK/NR 10 Much less active 13 64% more active 48 14% less active 4 4 58% more active 16 83% more active 45 Less active 38 More active Much more active ‹#› BASE: October 2013, US (n=1,600); Canada (n=1,505); Mexico (n=1,320) Copyright 2013. No reproduction without permission. Preliminary Conclusions ‹#› Copyright 2013. No reproduction without permission. Preliminary conclusions (i) » Case for North American cooperation still strong » Areas of weakened commitment may reflect lack of leadership and rising economic anxieties about future in Canada and the United States » Economic anxieties linked to eroding middle class, stagnation, and dark future grip in Canada and, in particular, the United States » Mexico is more pro-North America » America still focused on security at border, Canada/Mexico are not » Mexico newly stressing freedom of movement » NAFTA still strongly supported, North America preferred trading partner ‹#› Copyright 2013. No reproduction without permission. Preliminary conclusions (ii) » All three peoples seek greater cooperation to address more effectively their domestic concerns, and such a strategy could help to restore the middle class in the U.S. and Canada and continue to expand it in Mexico while also increasing their bargaining leverage vis-à-vis Asia and Europe. » Sovereignty is a concern among a very small part of the population: 10-16% in all three countries. The publics are far more interested in having their governments play a much more active role in promoting collaboration. » Lou Dobbs was wrong in saying that Americans fear a loss of sovereignty. Quite the contrary, the public feels our leaders have been too timid in promoting more unified approaches for dealing with domestic and transnational issues, like economic policy, the environment, and energy. ‹#› Copyright 2013. No reproduction without permission. For more information: Frank Graves EKOS Research Associates fgraves@ekos.com (613) 235-7215 www.ekos.com ‹#› Copyright 2013. No reproduction without permission.