ABSTRACT
Regional integration initiatives around the world vary in terms of approach, size, functional scope, set of objectives and targeted sectors and institutional design, each of which requires a particular type of mechanisms for their implementation. In contrast with its strongly rule-based coordination mechanism, North American Free Trade Area (NAFTA) has provided for a dispute resolution system that is rather reactionary, relying primarily on consultation and conciliation between the participating countries, which are aimed at finding unique solutions to specific problems as they arise. In light of the objectives provided in the Agreement, NAFTA's impact on the three participating countries can be considered to be relatively positive, as trade and investment flow among the three participating countries increased significantly after the entry into force of the Agreement. By 1980s, most countries in the region adopted export-oriented economic strategies which consisted of various state interventions in form of policies aimed at enhancing competitiveness and increasing the exports of specific industries or firms.
