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Ulimwengu1 and Sanyal (2013) have discussed the case of agriculture in the SubSaharan African (SSA) countries, where it is generally agreed that smallholder farmers
and other small and medium enterprises in the rural non-farm economy cannot compete
alone in global markets which is why they need to cooperate with other large agro-business enterprises so as to achieve competitiveness through cluster development.
Nevertheless, aligning agricultural policies, therefore achieving common agricultural
policies bears costs, as member countries lose part of their sovereignty while engaging
in the process of setting common policies and strategies. Still, positive spillovers will
take place through higher supply, better planning cycles and limited exposure to
fluctuations in international markets. The authours research points out that countries
lagging in terms of per capita agricultural growth are catching up with the leading
countries.
Jailly (2011) discusses about economic restructuring, economic integration, and crossborder economic regions in North America and Europe. While the European Union has
higher bodies and binding treaties, there is an absence of such
government like
gains because it pays lower wages -wages are paid in pesos and not in dollars , while
Sonora gains by wages paid to workers. Nevertheless, the relation of the two cannot be
described as truly interdependent, as the trade multiplier shows a dollar of income from
Arizona generates far less income in Sonora than the reverse.
Nevertheless, Anderson (2011, pp. 942-944) notes that even if under NAFTA virtually
all tariffs have been eliminated, Canada and the US are not part of a customs union,
which means they have independent tariffs, quotas and other restrictions on goods from
third countries. Therefore, each shipment that crosses the Canada-US border must
undergo customs clearance, which takes time and costs a lot of money. Still, custom
clearance is viewed as paramount in the light of the 9/11 events.
Furthermore, Arndt (2006) considers that certain weaknesses of NAFTA have become
apparent, including those associated with dispute settlement procedures and rules of
origin. As far as a monetary union is concerned, he considers that many of the basic
pre-conditions for currency union are met and that most empirical studies see gains
from monetary integration. Nevertheless he also mentions that gains are more easily
measurable than costs, especially the costs associated with the loss of monetary
policy independence.
According to Tyre and Hippel (1997), over the last decade the Canada-US border policy
has been characterized by adaptive learning, mainly policy innovation resulting from
past experiences in a given issue area. Canada-US deliberations on border policy show
that a good working relationship translates into greater policy adaptability, but that this
flexibility can also be an impediment to effective implementation (Hlatky, 2012). Also,
there is a number of factors can improve or offset the effectiveness of cooperation
between the two countries, such as the number of actors involved, resources deployed,
timing, and issue salience (Milner, 1997).
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