The composition of trade growth under NAFTA and the possibilities for closer integration between Canada and the United States are the topics covered in the current issue of the International Economic Review (IER), a publication of the U.S. International Trade Commission's Office of Economics.

The IER is produced as part of the ITC's international trade monitoring program. The program's purpose is to keep the Commission informed about significant developments in international economics and trade and to maintain the Commission's readiness to provide technical information and advice to policymakers in the Congress and the executive branch. The opinions and conclusions of the IER are those of the authors and do not necessarily reflect the views of the Commission or any individual Commissioner.

The current issue (May/June 2002) includes the following articles:

• A Decomposition of North American Trade Growth Since NAFTA--Total trade with NAFTA partners increased 78 percent in real terms between 1993 and 2001, compared to 43 percent with the rest of the world. This article compares the nature of U.S. trade growth with Canada and Mexico to that with non-NAFTA partners. Analyzing the composition of this growth provides insights into whether the United States is trading more of the same goods with NAFTA partners, trading new products, or upgrading the quality and variety of products. Quality upgrading and variety upgrading is shown to explain a part of U.S.-Mexico trade growth.

  Closer Integration between Canada and the United States?--A once politically unmentionable concept in Canada is receiving attention in light of the increased awareness of interdependence between the two North American trading partners, following hard upon the concerns over border issues and security after the terrorist attacks in the United States on September 11, 2001.

In addition, the publication reviews U.S. economic performance relative to other major trade partners, U.S. trade performance, and economic forecasts. Comparative economic indicators for major industrialized countries are also provided.

The current issue of the IER (USITC Publication 3527, May/June 2002) will be available on the ITC's Internet site at www.usitc.gov. To request a printed copy, write to the Office of the Secretary, U.S. International Trade Commission, 500 E Street SW, Washington, D.C. 20436, or fax requests to 202- 205-2104.

To be added to the mailing list for the publication, write to the Office of Economics, U.S. International Trade Commission, 500 E Street SW, Washington, D.C. 20436, or fax requests to 202-205-2340.