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Following NAFTA's lead. (Alliances).


Those familiar with economic globalization globalization

Process by which the experience of everyday life, marked by the diffusion of commodities and ideas, is becoming standardized around the world. Factors that have contributed to globalization include increasingly sophisticated communications and transportation
 probably are also familiar with the North American Free Trade Agreement North American Free Trade Agreement (NAFTA), accord establishing a free-trade zone in North America; it was signed in 1992 by Canada, Mexico, and the United States and took effect on Jan. 1, 1994. , commonly known as NAFTA NAFTA
 in full North American Free Trade Agreement

Trade pact signed by Canada, the U.S., and Mexico in 1992, which took effect in 1994. Inspired by the success of the European Community in reducing trade barriers among its members, NAFTA created the world's
, the accord entered into by the governments of Mexico, Canada, and the United States to promote trade across those countries' borders. What may be lesser known, however, is that associations and non-governmental organizations (NGOs) from all three countries are following their governments' lead and working together in the spirit of NAFTA to build upon the agreement.

In March 2002, the National Association of Manufacturers (NAM), Washington, D.C., Canadian Manufacturers & Exporters (CME CME

See: Chicago Mercantile Exchange


CME

See Chicago Mercantile Exchange (CME).
), Ottawa, and the Camara Nacional de la Industria de Transformacion (CANACINTRA CANACINTRA Camara Nacional de la Industria de Transformacion (Spanish:National Chamber of Transformation Industries, Mexico) ), Mexico City, announced the formation of the NAFTA Industry Alliance, a partnership to promote economic growth and other mutual goals among the member nations of NAFTA. "We will use this unprecedented alliance in the months and years ahead to explore such possibilities as joint economic proposals to our three governments, common negotiating positions, and perhaps most importantly, to point out to the public the benefits of NAFTA," says NAM President Jerry Jasinowski.

The alliance is in its nascent stages--its creation comes in the form of a memorandum of understanding A Memorandum of Understanding (MoU) is a legal document describing a bilateral or multilateral agreement between parties. It expresses a convergence of will between the parties, indicating an intended common line of action and may not imply a legal commitment. . "This is really a unique arrangement, and we believe it will serve the membership of all three organizations very well," says J. Stephen Larkin, president, The Aluminum Association, Washington, D.C., and the immediate past chair of the Council of Manufacturing Associations, a subset of NAM. Larkin says that possible purposes of the alliance would be to exchange information on trade and technical issues and to exchange views on trade and economic policy affecting North American industries North American Industries is a private company that has been building overhead cranes since 1969. It is a member of the Crane Manufacturers Association of America (CMAA) and has sold cranes throughout the world. . The alliance could develop joint initiatives addressing common policy concerns.

And it conceivably will benefit businesses directly as well, says Larkin, in that alliance participants can assist one another in the ways of doing business in their respective countries. "If you're trying to get something done in Mexico, it really does help to have somebody that knows how Mexican businesses and government are organized," he says.

Larkin, in fact, sees a parallel with some of ASAE's international initiatives, such as its alliance with the European Society of Association Executives. Note that in "Global Exchange" in the March 2002 issue of ASSOCIATION MANAGEMENT ESAE CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board.  Colin Grimes expressed how ESAE and European NGOs could benefit their American counterparts by bridging cultural gaps. "This dovetails with what ASAE ASAE American Society of Association Executives
ASAE American Society of Agricultural Engineers (Society for Engineering in Agricultural, Food, and Biological Systems)
ASAE Alkali-Sulfite-Anthraquinone-Ethanol
 is trying to do," Larkin says.

In this sense, the alliance has the potential to have a positive impact on businesses' bottom line. "If you don't have somebody on the ground who can give you the benefit of experience, you will spend incredible amounts of time and probably a fair amount of money," notes Larkin. "If you already have somebody that you have some confidence in and who has a shared experience, then you're already set to go."

There are the collective industry issues that the alliance will no doubt be addressing. As CME President and CEO Perrin Beatty says, "This agreement will allow us to create truly North American solutions to the concerns of manufacturers."
COPYRIGHT 2002 American Society of Association Executives
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2002, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Association Management
Geographic Code:1USA
Date:Jul 1, 2002
Words:511
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