The North American Free Trade Area Construction Experience Analysis

Economic globalization and regional economic integration are themain trends of the world economy. Regional economic cooperation is themain form of economic cooperation between the countries. Regionaleconomic cooperation is conducive to economic growth in membercountries to enhance the rational allocation of resources, rational divisionof labor, against the economic risks and financial risks.NAFTA is the world’s firsteconomic integration organizationcomposed by developed and developing countries. Its establishment andsuccessful operation set a good examplefor the economic cooperationbetween countries with large economic growth discrepancies. Currently,China, Japan and South Korea is actively preparing to strengthen regionaleconomic cooperation, planning to establish free trade zone.Thesituations and conditions of the United States, Canada, Mexico havemany similarities with China, Japan and South Korea. Therefore, analysisof the background and experience of the successful operation of theestablishment of NAFTA has some inspiration and referenceon regionaleconomic cooperation of China, Japan and South Korea.This study contains six parts. The first two partsreviewtheoreticalbasis and motivation of NAFTA establishment by studying literaturereview. The third part analyzesthe functioning experience of NAFTA byretrospectivestudy. Part IV and Part V analyzes the economic effects and political effects made by NAFTA through applied empirical research. Thesixth part using the application prospective study, using NAFTA as anexampleproposes innovative ideas about overcoming obstacles that maybe encountered when the FTA of China, Japan and South Korea buildsand functions andbreaking the bottleneck of the development of FTA.Theoretical study of regional economic integration is a hot issue inthe present world economic research; regional economic integrationtheory provides a theoretical basis and empirical model for thecross-border flows of trade, investment and other factors of production.This is a new model for future development of the world. In the processof economic globalization, based on geopolitical relations, regionaleconomyis an important feature of the21st century economy.NAFTAisthe first global organization which builds geopolitical relationship as alink across different political system, economic system, cultural system,the wealth gap, the development gap, and many other obstacles,successfully creatingthe free trade agreements zones of three differentcountries. Therefore, researching the development trajectory of NAFTAhas important academic and practical significance.