e to their major industries. Opening up trade will also enable the countries of the region to sustain economic development. Improved economic conditions have become an important political stabilizer, as it has effectively increased the cost of instability (Harvard Int. Review, Fall 97; pg. 28). The expansion of NAFTA will have as much of an impact on political advancement as it does on economic advancement. Free trade is a necessary ingredient in creating sustainable development, which is important in the consolidation of democracies. In order to assist in the transformation to stable democracies, the countries of Central and South America need access to the North American free market (H.I.R., Fall 97; pg. 28). Free trade increases economic competitiveness. This will aid in establishing the norms of political competitiveness, a key factor in stabilizing a democracy. The NSS states that, "our prosperity at home depends on our leadership in the global economy" (NSS). The US's involvement in future agreements will enable it to maintain its leadership role in the globalized market. An agreement with Chile and MERCOSUR (Southern Common Market) will strengthen the US's presence in the region.FactsIn relation to the size of the economies, US trade with Canada and Mexico has become much larger than that with any other trading partners. In 1996, almost one-third of the US two-way trade in goods with the world was with Canada and Mexico, at $412 billion. Two-way trade with our NAFTA partners has grown 44 percent since NAFTA was signed, compared with 33 percent for the rest of the world (Democratic Leadership Council, 9/97). Mexico and Canada accounted for 53 percent of the growth in total US exports in the first four months of 1997. Canada remains our largest trading partner, and Mexico has recently surpassed Japan as the US's second largest export destination in 1997 (Tracking US Trade, 2/98). In 1996 trade with these regions sup...
