

Nouriel Roubini Talks North American Union Proposal
Mar 21, 2025
Nouriel Roubini, CEO of Roubini Macro Associates and NYU Stern professor, unveils his provocative proposal for a North American trade union involving the US, Mexico, and Canada. He discusses how this union could enhance trade and economic integration, particularly amid rising tensions. Roubini weighs the challenges of transitioning from free trade to a full economic union, while also exploring labor dynamics and income disparities. Historical comparisons to the European Union spotlight potential benefits and obstacles, especially in sectors like automotive.
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North American Economic Union Proposal
- Nouriel Roubini proposes a North American economic union to resolve trade tensions between the US, Mexico, and Canada.
- He suggests this would go beyond the current free trade agreement to include services, capital, labor, and data.
Custom Union as a Stepping Stone
- A custom union, with common external tariffs, could be a step towards a full economic union.
- This would prevent countries like China from exploiting differing tariffs between nations.
Labor Movement Challenges
- Free movement of labor between US and Mexico is a significant hurdle for the proposed union.
- Roubini suggests a phased approach, similar to the EU, with restrictions until Mexico reaches higher economic and governance standards.