The Political Economy of Neoliberalism in North America

Abstract

During the 1980s and 1990s, the ideological and political landscape shifted in all three North American countries. Neoliberal ideology became much more influential and, some would say, hegemonic. One result was that Canada and Mexico became much more integrated with the United States economically, through the North American Free Trade Agreement (NAFTA). That agreement, while technically trilateral, can more accurately been described as three bilateral agreements (Canada-United States, Canada-Mexico and Mexico-United States) cobbled together (Kerr 2001: 1175). The agreement embeds a number of asymmetries: in important ways it is less binding on the United States than on the two smaller powers; and the rights of capital are privileged in comparison to those of other social actors and to the capacity of the state itself. NAFTA is far more than a mere ‘trade’ agreement and serves as a ‘conditioning framework’ for domestic politics in the Canadian and Mexican ‘spokes’ if not in the American ‘hub’ (see Grinspun and Kreklewich 1994). For domestic elites in Canada and Mexico who favor neoliberal policy outcomes, this is a welcome constraint. For those involved in contentious politics, the sovereignty-and democracy-diminishing impact of neoliberalism, together with its impact on society, are key mobilizing issues.