Trade and investment are mechanisms for transmission of information and technology, and income convergence. In the last five years, output per hour in the US business sector has grown at 2.7 percent. The integration trend is likely to continue as globalization forces countries to team up to compete in world markets. That said, integration has a long way to go. Eliminating rules of origin and freeing agricultural trade would be good short-term objectives.
Transportation is a good place to start.
Health systems should pay for care in the other country. Consolidated corporate tax returns should be possible. Common environmental and pharmaceutical standards should be on the agenda. That said, we should avoid any attempt to build an institutional superstructure. New institutions will only set off a round of turf battles with existing bureaucracies.