The structural data reviewed in thi

The structural data reviewed in this section provide considerable detail on
the three domestic economies and their trade linkages, and the impressions
given are generally consistent with what one would expect. We see the United
States at the center of a regional economy, the largest and most self-sufficient
member. Canada shares many attributes as a relatively affluent and industrialized country but exhibits considerably more bilateral trade dependency and
less diversity in production and trade structure. Mexico is the most distinctive
of the three, with a large subsistence sector, low value-added shares for labor
across the economy, even higher trade dependency, and less diversity.
All these structural features will have important implications for the adjustment patterns ensuing from North American economic integration. Even
this detailed infomiation cannot be considered in isolation, however, because market conduct in every one of the countries and sectors will also have a
decisive influence on the adjustment process. It is on this point where the
specification in the AGE model can make a significant contribution, particularly in light of the U.S. market share dominance in many Canadian and Mexican sectors.