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This paper, “The Great Plains, Canada and Mexico: Policy Issues in Rural Development and the Free Trade Agreement” by Cathy Quantic (August 1991), discusses the economic shift in North America from an east-west to a north-south orientation, largely driven by the Free Trade Agreement (FTA) with Canada and impending talks for an FTA with Mexico. Key points include:
- Shift in Trade Patterns: The FTA with Canada and the anticipated agreement with Mexico are reorienting trade and economic power towards a north-south axis, impacting the Great Plains states.
- Benefits of Free Trade: Local development officials in the Great Plains are optimistic about increased cooperation and trade opportunities with Canada, citing examples like the Red River Trade Corridor Development Project and the formation of the Rocky Mountain Trade Corridor.
- Challenges to Development: Barriers to healthy development include resistance to change in small towns (“Innovate or Die”), environmental concerns requiring mutual standards, Canadian worries about job and investment exodus to the US due to lower taxes and wages, and a significant lack of north-south transportation routes within the Great Plains.
- Economic Adaptation: The paper argues that the traditional rural Great Plains economy is ending, urging diversification into innovative, service-oriented firms that build on local strengths. It highlights successful non-traditional industries in Colorado, Texas, and Minnesota.
- Farmer as International Businessman: Modern farmers are adapting to the new economy by monitoring global markets and storing their own grain, transcending the traditional reliance on the closest grain elevator.
- Call for Integration: The author advocates for closer exporting ties between the Great Plains states and the Canadian Prairie Provinces to foster a more vibrant economy with increased jobs and investment, helping the region compete on a larger scale.
The document includes a table of Great Plains exports to Canada, Mexico, and the world in 1989, and a bibliography of related works. It concludes by emphasizing the Great Plains’ central role in the evolving international economic landscape.
