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Inherent in regional integration are risks to the WTO system. The EU has
become such an important political and economic force that this exercise in
regionalism may have diminished the importance of maintaining an open
multilateral trading system from a European standpoint. Similarly, the NAFTA
has brought added economic security to the North American region, and it can be
argued that this too potentially undermines the role of the WTO and
multilateralism.
Yet the threats remain largely in the domain of
theory. The EU has enjoyed political stability and sustained economic growth,
despite the very costly reunification of Germany and a major world monetary
crisis. It was predictable that Mexico would suffer social and political
dislocation as its economy was privatized and liberalized, and this prediction
has born fruit. However, in comparison with other countries at comparable
levels of economic development and political transition, Mexico is doing fairly
well. The North American economy has been strong in the face of economic
crisis. The political and economic strength and resiliency of the EU and NAFTA
have provided an extremely important anchor for the global economy over the
past several years.
There is no proof that regionalization of the EU
and North American economies has been responsible for their success. Strong
American, British, French and German economies may alone have provided the
necessary engines for economic growth in North America and Europe. However, on
the historical record, it is difficult to make the case that regional
integration has harmed the global economy, or that there is any near-to-medium
term threat present. The NAFTA is so far a healthy complementary institution to
the WTO.