Geography has made us neighbors, history has made us friends, the economy has made us partners and necessity has made us allies.

-John F. Kennedy

If anywhere, it is here on the 49^th parallel, the longest undefined border in the world, where free trade in the Americas began. The United States and Canada have historically enjoyed peaceful relations in politics and trade, and many say that the border remains significant only as a physical demarcation line between the two countries. With the implementation of the Canada-US Free Trade Agreement in 1989, and the North American Free Trade agreement in 1994, relations between these two countries continue to broaden. Increasing interdependency and the subsequent growth of trade has increased the bi-national significance of socio-economic and environmental issues. The futures of both Canada and the US are interlinked. Following a global trend towards regionalism, trade and industry are clustering in regions along both sides of the border, creating bi-national interdependent regions. As they grow bigger and more populated, trans-border regions are increasingly crucial to the economic health of both countries. The success of these economically vital, interdependent border regions depends on cooperation between the two countries.

There are two regions along the northern border which enjoy the highest volume of trade and therefore the most interdependent relationships. The first, and larger, is the greater Great lakes region, the industrial heartland of both Canada and the US. This region includes southern Quebec and Ontario, as well as the eight US states between Minnesota and New York. The second region is Cascadia. Cascadia encompasses British Columbia, Washington, and Oregon.

The goal of the northern border Task Force team is to provide insights into the important socio-economic and environmental issues in these regions which correspond to increasing interdependency and rising government interaction in the realm of globalization and free trade. Using specific information from these trans-border regions and examples from the EU, policy making suggestions will be advanced.

The northern border differs from the southern border not only because the two countries in question are on a more level economic footing, but also because the problems at hand are less glaring. While the north has pushed for integration, the South seems to struggle against the principles which a North American Free Trade Agreement promotes. Therefore, we argue that the northern border serves as an example of integration and represents the future of a fully integrated continent. This, in turn, ups the ante for the governments of the United States and Canada to fix the problems which continue to disturb the border regions of the north in order to move on to the more severe problems in the South. If Canada and the US are to continue to maintain regional integration, they need to recognize that without cooperation and common understanding, problems can only be aggravated.

Consequently, the issues which face the trans-border regions of the north involve dealing with the social and economic changes which a more globally oriented NAFTA has obligated them to confront. The chapters which follow acknowledge the fact that the two main regions on the northern border are fundamentally different. However, it is also evident that there exist some overarching goals and issues.

The first area of concern is the change in trade directions and trends. NAFTA has encouraged more north-South oriented trade, as opposed to east-west trade. This put more focus and pressure on the different regions of trade along the border. More importance and political autonomy has been placed upon governments and industries in these areas as the trans-border regions become more economically significant and government power becomes more decentralized with the trends of glocalization. Trade has also shifted away from primary industries such as natural resource trade and labor intensive, low-value added manufacturing industries to more high-tech, high-skill oriented, high-value added manufacturing industries. Although these changes have the US and Canada headed in the right direction as far as becoming more globally competitive, they have also caused problems such as labor dislocation and unemployment. Economic restructuring of cities and industries has become the number one problem in the wake of the implementation of NAFTA.

However, this brings to the forefront another issue common to both border regions. This is the lack of coordination plaguing the implementation of policies which are meant to better the situation. Unlike the European Union where policies are decide by a central institutional body, NAFTA lacks the coordination which this sort of organization provides. Although there are promising ideas from organizations on both sides of the border, there is a lack of common institutions which could effectively implement proposed solutions. Cooperation between governmental and non-governmental agencies, as well as business interests on both sides of the border, needs to be improved in order to facilitate the introduction and execution of programs necessary to alleviate the situation. Furthermore, each region can look towards the successes and failures of the other region for recommendations. Ultimately, it is the cooperation between all trans-border regions of NAFTA which can make North America a successful free trade area both continentally and globally.

The northern border Task Force team seeks to discover a middle course where socio-economic interests and environmental interests can coexist. This problem has been especially difficult with the growth of industrial manufacturing and the pollution it creates. Therefore, the following chapters have been set up to analyze first the socio-economic interdependencies and concerns of the two main trans-border regions, and then their environmental interdependencies and concerns. Subsequently, there is a section which focuses on the valuable lessons which can be gleaned from the experiences of trans-border regions in the European Union. Finally, we will present our policy recommendations for the northern trans-border regions.

Chapter 1 by Michelle Wolters examines the socio-economic impacts of NAFTA on the larger Great Lakes region. The northeast border region between the US and Canada offers an example of a highly integrated and interdependent economic region. The larger Great Lakes trans-border region experiences the heaviest volume of trade across the Canada-US border. The regional economy has long been based on automotive and manufacturing sectors. However, the parameters of NAFTA have introduced some challenges to the organization of trade in the region. NAFTA has forced the northeast border region to increasingly reconsider the future of manufacturing and trade in its economy. Social and economic restructuring have been the most effective response to the impacts of NAFTA in this region. The move towards restructuring involves a shift from primary, labor-intensive manufacturing and natural resource sectors to secondary, high-tech, high value added, and more skill oriented manufacturing sectors. This chapter looks at the increasing level of interdependence in this vital region as a result of the evolving nature of free trade and the problems which have subsequently emerged. Problems discussed include job displacement, unemployment, and the friction caused by sovereignty issues in Quebec. Finally, the overall impact of NAFTA in these areas is assessed, and potential and apparent trends are examined in the context of free trade.

In Chapter 2, Sarah Mitchell addresses the issues of water pollution which have arisen in the larger Great Lakes region. Pollution is widespread in the region, and has had drastic effects on wildlife, humans, and industry in and near the Great Lakes. This examination of the challenges to the ecosystem of the region illustrates the nature of this pollution and examines its effects. The chapter also outlines links between increased trade and industry and pollution. Pollution is largely a result of industry, yet the economy of the region has been adversely affected by pollution. For instance, cargo ships are unable to dock fully loaded at many harbors in the Great Lakes because of the toxic sludge which lies on the bottom of lakes and rivers. The chapter shows that pollution and environmental degradation must be addressed if the area's economy is to survive in the long-term. In order to begin the work of planning remediation, the chapter also explores several mechanisms through which pollution can theoretically be controlled. These methods include the use of institutions such as the International Joint Council (IJC), resource management, and issuing pollution permits. Finally, the strengths and weaknesses of past attempts to restore environmental quality in the region are assessed, and the implications of NAFTA is examined.

In the next two chapters the focus shifts from the greater Great Lakes region to the western region of Cascadia, which is comprised of British Columbia, Washington, and Oregon. Although this region is very different from the greater Great Lakes region, these chapters demonstrate the existence of common problems and themes. First, in Chapter 3, Ryan Ehlinger examines the socio-economic dimensions of NAFTA's impacts on Cascadia. As an interdependent region in terms of trade and income, Cascadia is attempting to increase the coordination of economic issues at the regional level. However, it is also apparent that while the effort to cooperate, both publicly and privately, is often strong and sincere, there are overarching contradictions as a result of too many organizations and groups. Thus while information and rhetoric, as well as actual government accords, are increasingly prevalent in Cascadia, there is often not much substance behind regional cooperation efforts. Also there is in this region a very real sense of competition for international investment and trade outside of North America. Ehlinger argues that unless these contradictions and competition can be effectively and cooperatively managed at the regional level, the benefits of NAFTA may be negated and the economy of the region could suffer dramatically in the long run.

Secondly, in Chapter 4, Amy C. Kaestner examines the environmental impacts that NAFTA has had on the region of Cascadia. Cascadia is a region that is uniquely dependent on the natural environment. However the environmental problems caused by extractive industries are becoming less pertinent, while environmental issues involving regional population growth and investment, as well as business location are becoming more important. The natural environment continues to be the foundation of the regional economy, but it is environmental quality rather than natural resources that contains true economic value. Cascadia is also particularly prone to environmental problems due to the arbitrary location of the international border regardless of the environmental integrity of the Cascadian ecosystem. The water and air of the region pay no attention to political boundaries, and neither should measures to protect the environment. Kaestner argues that environmental interdependence has been strengthened in light of the growth of trade, transportation, and population that has been the central result of NAFTA. In order for the economy of Cascadia to flourish and to succeed in the long-term, environmental problems that are exacerbated by the effects of free trade must be addressed consistently and in a timely manner.

Chapter 5 by Larry Writer moves away from Canada-US regional interdependence issues to examine the lessons of regional cooperation in the European Union. While the goals of integration in Europe are very different from the free trade goals of NAFTA in North America, European efforts to address the problems of regionalism can offer suggestions for the development and strengthening of regions along the international border along Canada and the United States. It becomes immediately clear that institutions play a much more significant role in Europe than in North America under NAFTA. In addition to the large, supranational framework of the EU, smaller regional institutions are the key to providing for the collective good of the entire trans-border region. Writer takes two case study regions in Europe and examines their transformations into institutionalized regions: 1) the euroregion which is comprised of the area around the German-Dutch border; 2) the euroregion which exists along the border of Belgium and France. Finally, possible lessons of the European experience are assessed and summarized in the light of problems which have been identified in Cascadia and in the larger Great Lakes ecosystem.

Finally, in Chapter 6, Colin Johnson looks at the increasingly high degree o interdependence developing between Canada and the United States, and offers recommendations for national and regional policy making. Although the well established free trade relationship between Canada and the US has brought with it considerable opportunities for increased trade and economic expansion, this growth is currently occurring at the expense of regional environmental integrity and the future sustainability of both countries' border regions. Thus, an unmanaged process of integration will be significantly detrimental to both Canada and the united states in the long run. Given the severe consequences of unmanaged growth, NAFTA should be about much more than simply free trade. Canada and the US need to strengthen their commitment to the sustainable development of shared border regions and the continent as a whole. While this chapter argues neither for a substantial pooling of national sovereignty by either country, nor for the creation of a European Union type of scenario in North America, it does argue for a significant deepening of Canadian-American integration. This deepening should occur at a "sub-national" level within the important border regions of the Canada-US border - namely Cascadia and the larger Great Lakes region. Building up the bi-national institutional framework within these regions represents an important first step in creating a deeper NAFTA, facilitating greater bi-national cooperation, and resolving many mutuallyshared problems between Canada and the US.