7 Nafta-side Agreements & Current Issues 0731

8/12/2019 7 Nafta-side Agreements & Current Issues 0731

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7NAFTA-SIDE

AGREEMENTS,

CURRENT ISSUES,THE EFFECTS AND

THE FUTURE

THE NORTH AMERICAN PARTNERSHIP Production Sharing and Trade with Mexico

A Case Study By Luis Correa-Quintero & Windham Loopesko

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7.1. NAFTA SUPPLEMENTAL AGREEMENTS

7.1.1 . Background

On August 13, 1993, the United States, Mexi! and "anada #eahed ag#ee$ent !n ase#ies a!#ds t! su%%&e$ent the '#a$e(!#) NAFTA ag#ee$ent *disussed in "ha%te#+, NAFTA - The F#a$e(!#) Ag#ee$ent/.

NAFTA is #e&ati0e& uni2ue a$!ng t#ade ag#ee$ents in add#essing s%ei'i issuese!nd the '#ee '&!( !' g!!ds and se#0ies. The s%ei'i t!%is that the NAFTAsu%%&e$ent ag#ee$ents add#ess a#e4

La!# !!%e#ati!n

En0i#!n$enta& !!%e#ati!n

Funding en0i#!n$enta& in'#ast#utu#e %#!5ets in the US6Mexi! !#de# #egi!n

$%!#t su#ges

Aess t! !u#ts and due %#!ess

7.1.2. !"ecti#es o$ the supp%ementa% agreements

8 initiati0e !' the United States, the th#ee !unt#ies (e#e #!ught a) t! theneg!tiating ta&e t! add#ess a se#ies !' issues that sh!u&d e in!#%!#ated in theNAFTA ag#ee$ent4

Raise the standa#d !' &i0ing in a&& th#ee !unt#ies

P#!tet asi (!#)e#s #ights

P#e0ent the use !' hi&d &a!#

P#!$!te hea&th and sa'et

P#!0ide a $ini$u$ (age En!u#age g!!d indust#ia& #e&ati!ns



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8 ad!%ting the su%%&e$enta& ag#ee$ents, the th#ee NAFTA nati!ns, in additi!n t!ahie0ing the %!&i g!a&s &isted e&!(, s!ught t! a&&a the !ne#ns !' a nu$e# !'%!&itia& !nstituenies in thei# !unt#ies that NAFTA ate#ed t!! na##!(& t! usinessinte#ests %#!0iding that thei# !ne#ns sh!u&d e ensh#ined in '!#$a& ag#ee$ents.

T! $eet these !ne#ns, the $e$e# nati!ns ag#eed that4

Eah $e$e# state see)s en'!#e$ent !' d!$esti en0i#!n$enta& &a(s and(!#)%&ae standa#ds and #e2ui#e$ents

N! nati!n an &!(e# &a!# !# en0i#!n$enta& standa#ds

The %#!ess !' !nsu&tati!n, e0a&uati!n and dis%ute sett&e$ent (i&& e !%en t!the %u&i

The $e$e# states ag#ee t! u%g#ade sa'egua#ds %#!teting against i$%!#tsu#ges

Aess t! 5ustie and due %#!ess #ights a#e extended t! en0i#!n$enta& and&a!# issues, and ad$inist#ati0e #e$edies as (e&& as !u#t %#!edu#es a#e

a0ai&a&e t! gua#antee en'!#e$ent !' &a!# and en0i#!n$enta& standa#ds The $e$e# states ag#ee t! esta&ish !' !$$issi!ns !n &a!# and the

en0i#!n$ent t! e0a&uate and sett&e dis%utes

The $e$e# states ag#ee t! st#engthen !#de# &ean u% and in'#ast#utu#ede0e&!%$ent

The $e$e# states !$$it t! !ntinua& u%g#ading !' &a!# and en0i#!n$enta&standa#ds th#!ugh !!%e#ati!n th#!ugh!ut N!#th A$e#ia

7.1.. Agreement on %a!or cooperation

7.1.3.1. O5eti0es

The th#ee $e$e# nati!ns !$$it the$se&0es t! %#!$!ting i$%#!0ed &a!# !nditi!nsand st#!ng en'!#e$ent !' nati!na& &a!# &a(s in a&& th#ee !unt#ies !' N!#th A$e#ia.



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S%ei'ia&&, the %a#ties ag#eed t!4

P#!$!te i$%#!0ed &a!# &a(s and standa#ds

E''eti0e en'!#e$ent !' these &a(s

En!u#aging !$%etiti!n ased !n #ising %#!duti0it and 2ua&it

P#!$!te )e &a!# %#ini%&eso P#!teti!n against hi&d &a!#o The #ight t! st#i)e and a#gain !&&eti0e&o F#eed!$ !' ass!iati!no Mini$u$ e$%&!$ent standa#ds, in&uding a $ini$u$ (ageo E&i$inati!n !' e$%&!$ent dis#i$inati!no P#e0enti!n !' !u%ati!na& aidents and diseases

7.1.3.:. La!# !$$issi!n

The side ag#ee$ents #eate a ne( !$$issi!n !n &a!# !!%e#ati!n (ith eah !unt#

#e%#esented !n a !uni& its t!% ainet &e0e& &a!# !''iia& t! (!#) !!%e#ati0e& !n4

La!# issues in&udingo Ou%ati!na& hea&th and sa'eto "hi&d &a!#o 8ene'its '!# (!#)e#so Mini$u$ (ageso ndust#ia& #e&ati!nso Legis&ati!n !n the '!#$ati!n and !%e#ati!n !' uni!nso The #es!&uti!n !' &a!# dis%utes

Otaining %u&i ad0ie and assistane in these ati0ities Otaining tehnia& su%%!#t '#!$ an nte#nati!na& "!!#dinating Se#eta#iat *"S/

(hih (i&& #e%!#t %e#i!dia&& t! the !uni& !n &a!# issues, &a!# &a(s and thei#en'!#e$ent, &a!# $a#)et !nditi!ns *a0e#age (ages and &a!# %#!duti0it/,and t#aining and ad5ust$ent %#!g#a$s in the th#ee !unt#ies

The a%%!int$ent in eah !unt# !' a Nati!na& Ad$inist#ati!n O''ie *NAO/ t!se#0e as a %!int !' !ntat (ith !the# !$$issi!n entities and nati!na&g!0e#n$ents and t! !nsu&t (ith !the# NAOs !n in'!#$ati!n !n &a!# $atte#s

"#eating a &i$ate !' t#ans%a#en and $eans !' d!$esti en'!#e$ent th#!ugho T#ans%a#en and d!$esti en'!#e$ent $eans !'

Pu&iati!n !' &a(s, #egu&ati!ns, %#!edu#es, and %#!$!ti!n !'

%u&i a(a#eness s! that (!#)e#s and e$%&!e#s )n!( thei# #ightsand #es%!nsii&ities

P#!$!ti!n !' !$%&iane (ith &a(s and en'!#e$ent (ith T#ained ins%et!#s M!nit!#ing and !n6site ins%eti!ns En!u#age$ent !' 0!&unta# !$%&iane



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Mandat!# #e%!#ting En'!#e$ent ati!ns

o Aess t! 'ai# and d!$esti %#!edu#es !$$itting eah !unt# t! P#!0ide inding d!$esti en'!#e$ent !' (!#)e#s #ights unde#

its &a!# &a(s *in&uding !&&eti0e a#gaining #ights/

Maintain d!$esti ad$inist#ati0e and 5udiia& %#!esses that a#einde%endent and i$%a#tia&, !$%& (ith due %#!ess, a&&!( %a#tiest! e hea#d and %#esent e0idene, and n!#$a&& a#e !%en t! the%u&i

P#!0ide '!# a #ight t! see) inde%endent #e0ie(, as a%%#!%#iate,!' ad$inist#ati0e dete#$inati!ns

P#!0ide a #ight t! %#!eeding %a#ties t! see) #e$edies '!# theen'!#e$ent !' &a!# #ights, in&uding #e$edies *'#!$ !$%&ianeag#ee$ents t! %ena&ties, 'ines, !# in5unti!ns/

En!u#age e''eti0e en'!#e$ent g!0e#n$ents !' &a!# &a(sth#!ugh

The "S #e%!#ting %e#i!dia&& !n &a!# &a(s and thei#

en'!#e$ent. NAOs !nsu&ting and exhanging in'!#$ati!n !n

en'!#e$ent as (e&& as t! in'!#$ the !uni& and the "S. "!nsu&tati!ns the &a!# !$$issi!n !n an &a!#

$atte#, in&uding en'!#e$ent 2uesti!ns !n an &a!# &a(. "#eating an E0a&uati!n "!$$ittee !' Ex%e#ts *E"E/ !'

inde%endent tehniians that an e !n0ened at the#e2uest !' an %a#t t! exa$ine a $atte# in0!&0ing a %atte#n!' %#atie and #e%!#t and $a)e #e!$$endati!ns t! the!uni&.

A&&!(ing the in0!ati!n !' dis%ute sett&e$ent %ane&s,

a)ed u&ti$ate& 'ines and t#ade santi!ns. "anadaag#eed t! $a)e dis%ute sett&e$ent %ane& 5udg$ents !n 'inesand #e$edia& ati!ns aut!$atia&& en'!#ea&e in d!$esti!u#t t! e&i$inate the t#ade santi!ns #is).




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7.1.'. Agreement on en#ironmenta% cooperation

7.1.;.1. En0i#!n$enta& !&igati!ns

n the side ag#ee$ent !n the en0i#!n$ent, the NAFTA %a#tne#s !$$it the$se&0es t!unde#ta)e i$%!#tant en0i#!n$enta& %!&iies t!(a#ds de0e&!%$ent, i$%&e$entati!n anden'!#e$ent !' thei# en0i#!n$enta& &a(s th#!ugh4

Aess t! nati!na& !u#ts iti=ens t! %etiti!n g!0e#n$ents t! unde#ta)een'!#e$ent ati!ns and see) #ed#ess !' ha#$

O%enness !' 5udiia& and ad$inist#ati0e %#!eedings and t#ans%a#ent %#!edu#es'!# the du#ati!n !' en0i#!n$enta& &a(s and #egu&ati!ns

La(s and standa#ds t! %#!0ide high &e0e&s !' en0i#!n$enta& %#!teti!n and t!(!#) !!%e#ati0e& in thei# enhane$ent

E''eti0e en'!#e$ent !' en0i#!n$enta& &a(s a)ed a dis%ute sett&e$ent%#!ess

The Ag#ee$ent d!es n!t a''et #ights !' states and %#!0ines unde# NAFTA t! $aintainstanda#ds at &e0e&s highe# than the 'ede#a& g!0e#n$ents. "!unt#ies $ust #e%!#t !n the

state !' thei# en0i#!n$ents and %#!$!te eduati!n, sienti'i #esea#h andtehn!&!gia& de0e&!%$ent. The (i&& (!#) t!(a#d &i$iting t#ade in t!xi sustanesthat the ha0e anned d!$estia&&.

7.1.'.1.1. Commission on (n#ironmenta% Cooperation

The th#ee !unt#ies t!% en0i#!n$enta& !''iia&s *in the US the ad$inist#at!# !' theEn0i#!n$enta& P#!teti!n Agen/ (i&& !$%#ise the !$$issi!ns !uni&. A >!int

Ad0is!# "!$$ittee !' n!ng!0e#n$enta& !#gani=ati!ns '#!$ a&& th#ee !unt#ies (i&&ad0ise the !uni&. A se#eta#iat h!used in a sing&e &!ati!n unde# the di#eti!n !' anexeuti0e di#et!# (i&& e the d#i0ing '!#e !' the e''!#t and (i&& ta)e #!ad di#eti!n '#!$the !uni&, ut (i&& $aintain a high deg#ee !' inde%endene.



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7.1.'.1.2. )he Commission*s agenda

The en0i#!n$enta& !$$issi!n see)s t! #!aden !!%e#ati0e ati0ities a$!ng theNAFTA %a#tne#s (ith an agg#essi0e and i$%!#tant (!#) %&an. t is ha#ged (ith!nside#ing the en0i#!n$enta& i$%&iati!ns !' %#!ess and %#!duti!n $eth!dsth#!ugh!ut %#!dut &i'e &es.

S%ei'ia&&, the "!$$issi!n is ha#ged (ith4

O''e#ing %u&i aess t! in'!#$ati!n a!ut ha=a#d!us sustanes.

P#!0iding assess$ent and $itigati!n !' t#ans6!unda# en0i#!n$enta& %#!&e$s

"#eating a %!int !' in2ui# '!# %u&i !ne#ns a!ut NAFTAs e''et !n theen0i#!n$ent and an a0enue '!# its dis%ute sett&e$ent %ane&s t! !tainen0i#!n$enta& ex%e#tise (hen 'aed (ith en0i#!n$enta& issues

7.1.'.1.. +u!%ic participation and dispute sett%ement

"iti=ens !' a&& th#ee !unt#ies a#e '#ee t! $a)e su$issi!ns t! the "!$$issi!n !n thei#!ne#ns !n en0i#!n$enta& issues. The "!$$issi!ns se#eta#iat (i&& at !n thesu$issi!ns t! de0e&!% 'at 'inding #e%!#ts t! e $ade %u&i i' t(! !' the th#ee %a#ties!nu#.

The "!$$issi!n !%e#ates unde# a !nsu&tati0e %#!ess t! disuss issues, in&udingsu$issi!ns the %u&i and the se#eta#iats 'at 'inding ati0ities. N!n en'!#e$ent!' a nati!ns en0i#!n$enta& &a(, (hen !nsu&tati!ns 'ai& t! #es!&0e the $atte#, (i&& egi0en s%eia& attenti!n. ' a $atte# a''ets a set!# in0!&0ing t#aded g!!ds !# se#0ies,it $a e #e'e##ed t! a dis%ute sett&e$ent %ane&. The dis%ute %#!ess %#!0ides in theend '!# santi!ns i' !unt#ies ha0e 'ai&ed t! !##et %#!&e$s !' n!n en'!#e$ent.M!neta# assess$ents !' u% t! ?:@ $i&&i!n %e# 0i!&ati!n du#ing the 'i#st ea# !' theag#ee$ent $a a%%&.

7.1.;.:. S!%e !' the Ag#ee$ent

The s!%e !' the en0i#!n$enta& ag#ee$ent is #!ad and in&usi0e4 An en0i#!n$enta&!# natu#a& #es!u#e !# !&igati!n !' the ag#ee$ent $a e add#essed th#!ugh the (!#)%#!g#a$. ssues su5et t! dis%ute sett&e$ent %ane&s and %!ssi&e santi!ns a#e $!#ei#u$s#ied, '!used !n (hethe# the %a#ties a#e e''eti0e& en'!#ing thei#en0i#!n$enta& &a(s and (hethe# that n!n en'!#e$ent is #e&ated t! t#ade !# !$%etiti!na$!ng the %a#ties.



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7.1.,. unding en#ironmenta% in$rastructure pro"ects in the.S./0eico !order region

A ne( instituti!na& st#utu#e (i&& %#!$!te e''eti0e !!#dinati!n !' in'#ast#utu#e%#!5ets. nitia& '!us !n se#i!us (aste (ate# t#eat$ent and (ate# %!&&uti!n a&!ng the!#de#.

The instituti!n (i&& %#!0ide tehnia& and 'inania& assistane t! the %#!5ets.

A t#ans%a#ent %#!ess in!#%!#ates 0ie(s !' &!a& #esidents and n!n6g!0e#n$ent!#gani=ati!ns.

The instituti!n (i&& (!#) t! $!i&i=e $u&ti%&e s!u#es !' 'inaning.

The %#i0ate set!# *#aising a%ita& di#et&/

La!# issues in&uding

i#et g!0e#n$ent su%%!#to L!anso G#antso

Gua#antees at 'ede#a&, state, !# &!a& &e0e& A !#de# en0i#!n$enta& 'inaning 'ai&it *a ne( 'inaning $ehanis$ t! se#0e

the !#de# instituti!n as !ne s!u#e !' di#et &!ans and %a#tia& gua#antees/



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7.1.. Agreement on import surges

7.1.+.1. Ea#& (a#ning sste$

The NAFTA side ag#ee$ents #eate a ne( $ehanis$ '!# !nsu&tati!n a$!ng NAFTA!unt#ies and '!# exa$ining e!n!$i 'at!#s, in&uding e$%&!$ent, auth!#i=ed unde#NAFTA, t! #es%!nd t! in#eased i$%!#ts. F!# exa$%&e, a !unt# $ight a&& '!#!nsu&tati!n and a 5!int exa$inati!n in the !$$ittee as a #esu&t !' de&ining

e$%&!$ent in a %a#tiu&a# indust#.

7.1.+.:. NAFTA sa'egua#d %#!0isi!ns

NAFTA aead !ntains i$%!#tant %#!0isi!ns t! sa'egua#d a !unt#s indust# and(!#)e#s against i$%!#t su#ges.

A !i%atera% sa$eguard mechanism%e#$its the sna%6a) t! %#e6NAFTA !#MFN ta#i'' #ates '!# u% t! th#ee ea#s, !# '!u# ea#s '!# ext#e$e& sensiti0e%#!duts, i' in#eased i$%!#ts '#!$ Mexi! a#e a sustantia& ause !' !#th#eaten se#i!us in5u# t! a d!$esti indust#

A g%o!a% sa$eguard mechanisma&&!(s ta#i''s !# 2u!tas !n i$%!#ts '#!$Mexi! !# "anada (hen i$%!#ts a#e a sustantia& ause !# th#eaten se#i!usin5u# t! a d!$esti indust#

Sensiti#e agricu%tura% productsa#e hand&ed s%eia&& in the '!#$ !' Ta#i'' RateCu!tas *TRC/ (he#e high $!st6'a0!#ed nati!n *MFN/ ta#i''s )i) in a!0e as%ei'ied 2uantit !' i$%!#t.

Sensiti#e teti%e and appare% productsa&s! ha0e sa'egua#d %#!0isi!ns.



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7.1.+.3. "hanging NAFTAs P#!0isi!ns

NAFTAs sa'egua#d %#!0isi!ns (i&& e studied as t! h!( (e&& the a#e (!#)ing and#e!$$endati!ns (i&& e $ade '!# #e0isi!ns, as a%%#!%#iate.

7.1.7. Access to courts and due process

7.1.7.1. Ad$inist#ati!n and dis%ute #es!&uti!n

NAFTA is a '#ee t#ade a#eaD it d!es n!t ha0e &ega& instituti!ns si$i&a# t! th!se !' theEu#!%ean Uni!n. !(e0e#, it d!es ha0e an ad$inist#ati0e !d and a dis%ute#es!&uti!n %#!edu#e.

7.1.7.:. The NAFTA Fai# T#ade "!$$issi!n

The NAFTA Fai# T#ade "!$$issi!n *FT"/ !0e#sees the i$%&e$entati!n !' the NAFTAag#ee$ent and atte$%ts t! #es!&0e dis%utes a$!ng the $e$e# nati!ns. t has !neainet6&e0e& !''iia& '#!$ eah !' the th#ee g!0e#n$ents, su%%!#ted anad$inist#ati0e sta'' and !$$ittees.

7.1.7.3. is%ute #es!&uti!n

The "!$$issi!n dis%ute #es!&uti!n %#!edu#es a#e si$i&a# t! th!se !' the TO. ' adis%ute 'a&&s (ithin the 5u#isditi!n !' !th the TO and the FT", the %a#ties $ah!!se (hih !d (i&& hea# the dis%uteD i' the %a#ties a#e una&e t! ag#ee !n theh!ie !' '!#u$, the FT" (i&& hea# the ase. ' the %a#ties ann!t #eah an a$ia&e#es!&uti!n, the FT" $a !n0ene an a#it#a& %ane&. The %ane&s #esu&ts a#e n!t inding*and, i' n! #es!&uti!n is #eahed (ithin 3@ das, the !$%&aining !unt# $a #aise itsta#i''s/D it ann!t !$%e& a $e$e# state t! hange its &a(s !# %!&iies.



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7.1.7.;. P#!0isi!ns

The th#ee !unt#ies !$$it t! %#!0iding thei# iti=ens (ith aess t! 'ai#, t#ans%a#entand e2uita&e !u#t %#!eedings '!# the #ed#ess !' ha#$ and '!# en'!#e$ent !' thei#!unt#s en0i#!n$enta& and &a!# &a(s. S%ei'ia&&, the !$$it t!4

Ensu#ing that an!ne (ith &ega&& #e!gni=ed inte#est has aess t!ad$inist#ati0e !# 5udiia& %#!edu#es '!# the en'!#e$ent !' &a!# anden0i#!n$enta& &a(s.

Maintaining inde%endent and i$%a#tia& ad$inist#ati0e and 5udiia& %#!esses that!$%& (ith due %#!ess, a&&!( %a#ties t! e hea#d and %#esent e0idene, andn!#$a&& a#e !%en t! the %u&i.

P#!0iding a #ight t! see) #e$edies '!# the en'!#e$ent !' &a!# #ights anden0i#!n$enta& &a(s, in&uding !$%&iane ag#ee$ents, %ena&ties, da$ages,'ines, and in5unti!ns.

P#!0iding iti=ens the #ight t! as) auth!#ities t! in0estigate a&&eged 0i!&ati!ns !'

en0i#!n$enta& !# &a!# &a(s and gi0e th!se #e2uests due %#!ess.

7.:. TE MPA"T OF NAFTA

7.2.1. 3o4 industries ha#e !ene$ited

F#ee t#ade has en!u#aged Mexian %&ants t! i$%!#t US $ahine# and %a#ts as(e&& as $ate#ia&s suh as %&astis and texti&es.

G#!(th and de0e&!%$ent !' #e&ated indust#ies ha0e in#eased in %#e0i!us&&!sed Mexian $a#)ets.

"!$%etiti!n is $!#e e''iient (ith #i0a& Eu#!%ean and Asian $a#)ets.

7.2.2. ($$ect on consumers

NAFTA has #edued ust!$s duties !n th!usands !' ite$s, #esu&ting in &!(e#!sts '!# i$%!#ted g!!ds.

ue t! &!(e# %#ied &a!#, US $anu'atu#e#s a#e en!u#aged t! esta&ish!%e#ati!ns in Mexi!, #esu&ting in &!(e# %#ies !' g!!ds shi%%ed '#!$ Mexi! t!the US



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7.2.. ($$ect on the en#ironment

Existing US hea&th, sa'et and en0i#!n$enta& standa#ds #e$ained intat.

The US a#s i$%!#tati!n !' g!!ds that d! n!t $eet US standa#ds.

NAFTA %#e0ents i$%!#ts !' g!!ds '#!$ nati!ns (ith &ess #est#iti0e en0i#!n$ent

standa#ds. Mexi!s en0i#!n$enta& &a(s *enated !n Ma#h 1, 19BB/ a#e si$i&a# t! US

&egis&ati!n. The US En0i#!n$enta& P#!teti!n Agen has 5!int en'!#e$ent%!(e#s in the !#de# a#ea.

Unde# the ma5ui%adora%#!g#a$, ha=a#d!us (aste and an !the# (aste de#i0ed'#!$ i$%!#ted $ate#ia&s $ust e ex%!#ted !ut !' Mexi!. e&i0e# ama5ui%adora!' ha=a#d!us (aste t! a thi#d %a#t suh as a (aste dis%!sa&!$%an d!es n!t #e&ie0e the !$%an !' its !&igati!n t! ex%!#t the$ and !u&d&ead t! sustantia& %ena&ties. E!&!gia& (a6i&&s $ust e !tained '!# e0e#shi%$ent.

En0i#!n$enta& &iensing, #egist#ati!n and #e%!#ting #e2ui#e$ents $ust e $et

a&& !$%anies. These #e2ui#e$ents in&ude4o En0i#!n$enta& !%e#ating &iense *SEUE/o En0i#!n$enta& i$%at state$ento Residua& (ate# disha#ge #egist#ati!n *SEUE/o a=a#d!us (aste gene#at!# #egist#ati!n *SEUE/o St!#age !' ha=a#d!us $ate#ia& a!#ding t! #egu&ati!ns (ith a &!g !n

in0ent!# #e%!#ted t(ie a ea#

The N!#th A$e#ian Ag#ee$ent !n En0i#!n$enta& "!!%e#ati!n *NAAE"/ #eated the"!$$issi!n '!# En0i#!n$enta& "!!%e#ati!n (ith an !ng!ing $andate t! $!nit!# thee''ets !' NAFTA i$%&e$entati!n. O0e#a&&, the#e a%%ea#s t! e n! sste$i !#sste$ati ha#$'u& e''ets t! the en0i#!n$ent. The 'ea#s !' a #ae t! the !tt!$a%%ea# t! e exagge#ated. En0i#!n$enta& %#!&e$s ha0e a#isen, ut &a#ge& due t! theextensi0e g#!(th in $anu'atu#ing *%a#tiu&a#& a&!ng the USMexian !#de#/ andt#ade.

7.2.'. ($$ect on immigration

8usiness exeuti0es in the th#ee !unt#ies an &i0e and (!#) an(he#e in N!#thA$e#ian (ith 'e( #est#iti!ns. "u##ent a##ie#s (i&& #e$ain t! %#e0ent Mexian (!#)e#s'#!$ see)ing highe# (ages in US. !(e0e#, a&& indust#ies that %a#tii%ate in #!ss6!#de# t#ading a#e ex%e#iening s%eedie# g#!(th and de0e&!%$ent.



1:


13/34

$$ig#ati!n *%a#tiu&a#& i&&ega& i$$ig#ati!n/ '#!$ Mexi! in#eased '#!$ the signing !'NAFTA unti& the e!n!$i #isis !' :@@76:@@9 ut has de#eased sine thenD a##ests'!# i&&ega& i$$ig#ati!n (i&& e a#!und !ne6'i'th in :@11 !' the %ea) ea# !' :@@@,#e'&eting n!t (ea)e# ut st#!nge# en'!#e$ent e''!#ts. n :@1:, the US is atua&&ex%e#iening a net e$ig#ati!n !' Mexi! (!#)e#s 6need citation.The #eent #isis andthe 'a&& in e$%&!$ent in !th the US and Mexi!, as (e&& as the in#ease in d#ug0i!&ene, ha0e in#eased the tensi!n !n !th sides !' the !#de# !ne#ningi$$ig#ati!n. The '&!( !' t#ade and tehn!&!g t! Mexi! has e&i$inated $an $anua&&a!# 5!s and in#eased i$$ig#ati!n %#essu#es. hi&e the#e ha0e een nu$e#!usa&&s '!# #e%ea& !' NAFTA t! &!(e# the %#essu#es !n i&&ega& i$$ig#ati!n, #e%ea& see$sun&i)e&.

7.2.,. ($$ect on %a!or

The US has esta&ished $easu#es ai$ed at %#!teting A$e#ian 5!s in i$%!#t6sensiti0e US indust#ies. M!#e!0e#, a&& th#ee !unt#ies adhe#e t! e#tain standa#ds '!#!u%ati!na& hea&th and sa'et standa#ds, hi&d &a!# and (!#)e#s #ights. These

standa#ds ha0e $ini$i=ed the i$$ediate &!ss !' e#tain US 5!s and ha0e &ed t!i$%#!0e$ent in &a!# standa#ds in Mexi!.

One !' the $!st $e$!#a&e %h#ases in #eent %!&itis (as R!ss Pe#!t s giant su)ings!und#e%#esenting the '&!( !' 5!s '#!$ the US t! Mexi! as a #esu&t !' NAFTA. As(ith $an !' the antii%ated !nse2uenes '#!$ NAFTA, this 5! '&!( has n!t !u##ed.

Ga# u'aue# and >e''#e Sh!tt des#ie the e''ets !n e$%&!$ent in eah !' theth#ee !unt#ies as %!siti0e&ess than the %!&itiians %#!$ised ut $!#e than the%undits ex%eted. The n!te that the NAFTA e''et!n US e$%&!$ent (as $ini$a&!$%a#ed (ith !0e#a&& t#ends *0e# %!siti0e, due t! the a&$!st uninte##u%ted e!n!$i

ex%ansi!n et(een 1993 and :@@7/, ut the esti$ate that N!#th A$e#ian t#adeex%ansi!n #esu&ted in a net in#ease !' 1@@,@@@ 5!s %e# ea# *and that ex%!#t6#e&ated

5!s tend t! %a 1361+H highe# (ages than !the# 5!s/.

7.2.. ($$ect on American and 0eican 4orkers

NAFTA has in#eased the de$and '!# &a!# and i$%#!0ed (ages !' (!#)e#s in !thMexi! and the United States. NAFTA has #esu&ted in 5!s eing #eated !n !th sides!' the !#de# due t! Mexi!s #e&iane !n US '!# 7@H !' its i$%!#ts. The ag#ee$enthas sti$u&ated Mexi!s e!n!$i g#!(th and #eated ne( and highe# %aing 5!s,ena&ing Mexians t! u $!#e A$e#ian g!!ds, (hih has a&s! &ed t! #eati!n !' $!#e

US 5!s.



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14/34

7.2.7 ($$ect on tari$$s

NAFTA has #esu&ted in the %hasing !ut !' a&& ta#i''s and duties !n t#ade a$!ng th#ee!unt#ies. S!$e +


15/34

Country Population ro!! "o#e!ticProduct

$%&'(' #illion )%*+,&- trillion

$*'- #illion %+.,- trillion

%%&'$ #illion %+.*( trillion

TOTA/ *,0'. #illion ) %(+1$1 trillion



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16/34

7..2. )rade statistics and $acts

The O''ie !' the US T#ade Re%#esentati0e has %#!0ided the '!&&!(ing statistis4

7.3.:.1. T#ade in g!!ds and se#0ies

US g!!ds and se#0ies t#ade (ith Mexi! t!ta&ed ?3;1 i&&i!n in :@@9 *&atestdata a0ai&a&e '!# g!!ds and se#0ies t#ade !$ined/.

o Ex%!#ts t!ta&ed ?1


17/34

o S!eans *?1.1 i&&i!n/o heat *?79< $i&&i!n/

US ex%!#ts !' %#i0ate !$$e#ia& se#0ies * i.e., ex&uding $i&ita# andg!0e#n$ent/ t! Mexi! (e#e ?:1.B i&&i!n in :@@9 *&atest data a0ai&a&e/, B.@H*?1.9 i&&i!n/ &ess than :@@B ut 93H g#eate# than 199; &e0e&s. The !the# %#i0ate

se#0ies *usiness, %#!'essi!na& and tehnia& se#0ies/, and the t#a0e&ateg!#ies a!unted '!# $!st !' US ex%!#ts in :@1@.

7.3.:.3. $%!#ts

Mexi! (as the United StatesI thi#d &a#gest su%%&ie# !' g!!ds i$%!#ts in :@1@.

US g!!ds i$%!#ts '#!$ Mexi! t!ta&ed ?::9.7 i&&i!n in :@1@, u% 3@.@H *?


18/34

7.3.:.


19/34

P#e0i!us& inaessi&e Mexian $a#)ets a#e !%en t! US g!!ds and !u&d g#!( t! ?e''#e >. Sh!tt, t(! ex%e#ts at the Pete#s!n nstitute '!#nte#nati!na& E!n!$is and the auth!#s !' NAFTA Re0isited4 Ahie0e$ents and"ha&&enges, sa that !n a asi &e0e&, NAFTAIs i$%at !n N!#th A$e#ian !$%anies is&ea#. NAFTA (as designed t! %#!$!te e!n!$i g#!(th s%u##ing !$%etiti!n ind!$esti $a#)ets and %#!$!ting in0est$ent '#!$ !th d!$esti and '!#eign s!u#es,the (#ite. t has (!#)ed. N!#th A$e#ian 'i#$s a#e n!( $!#e e''iient and %#!duti0e.The ha0e #est#utu#ed t! ta)e ad0antage !' e!n!$ies !' sa&e in %#!duti!n andint#a6indust# s%eia&i=ati!n.

7.,.1. #era%% out%ook

7.


30/34

E!n!$ists ag#ee that s!$e &!(6s)i&&ed, &ight $anu'atu#ing 5!s, suh asga#$ent, 'u#nitu#e $a)e#s, and g&ass &!(e#s, (i&& &i)e& $!0e t! Mexi!.N!nethe&ess, ex%e#ts ag#ee that $!#e 5!s (i&& e #eated in the United States,in an)ing, insu#ane, and $a#)eting

7.+. NAFTA PLUS 66 TE FUTURE OF NAFTA

The#e has een #ene(ed disussi!n !' (as t! enhane !!%e#ati!n et(een the th#ee

NAFTA %a#tne#s. The !ne%t !' dee%ening NAFTA 66NAFTA %&us

66 has ta)en !nadded sa&iene in s!$e 2ua#te#s, sine $!st !' the gains #esu&ting '#!$ ta#i'' #eduti!n

!' the ag#ee$ent ha0e aead een #ea&i=ed. M!#e!0e#, '#ee t#ade ag#ee$entsneg!tiated the United States and "anada (ith !the# t#ading %a#tne#s ha0edi$inished the #e&ati0e ad0antage !' NAFTA. n additi!n, sine the :@@1 te##!# atta)s,the#e has een a %e#e%ti!n s!$e in "anada and Mexi! that !ntinued e!n!$iaess t! the US $a#)et is de%endent !n g#eate# seu#it !!%e#ati!n (ith the UnitedStates. F!#$e# US A$assad!# Pau& "e&&ui n!ta& said that seu#it t#u$%s t#adein the US6"anada #e&ati!nshi%. This #ea&i=ati!n has &ed t! $an !#de# initiati0esdes#ied a!0e.

The Seu#it and P#!s%e#it Pa#tne#shi% *SPP/ !ntains $an initiati0es that!u&d &ead t! s!$e $easu#e !' #egu&at!# ha#$!ni=ati!n a$!ng the United States,"anada and Mexi!.

n additi!n t! a&&ing '!# i$%&e$entati!n !' !$$!n !#de# seu#it st#ategies, the SPPinitiates !!%e#ati!n in ene#g, the t#ans%!#tati!n net(!#), 'inania& se#0ies andstanda#ds ha#$!ni=ati!n. Ten $iniste#ia& (!#)ing g#!u%s (e#e '!#$ed and (e#e#e2ui#ed t! #e%!#t a'te# 9@ das, and se$i6annua&& the#ea'te#. Re%!#ted&, the s!%e !'SPP ati0it is in the #ea&$ !' #egu&at!# hanges, ati!ns that d! n!t #e2ui#e &egis&ati0eati0it.



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7..1. Common market or economic union:

ee%e# integ#ati!n !' the N!#th A$e#ian e!n!$i s%ae (!u&d i$%& s!$e '!#$ !'!$$!n $a#)et !# e!n!$i uni!n. A !$$!n $a#)et a#ea (!u&d add '#ee $!0e$ent!' &a!# and a%ita&D thus, i$$ig#ati!n and in0est$ent #egu&ati!ns (!u&d need t! eha#$!ni=ed !# $utua&& #e!gni=ed. n additi!n t! a !$$!n ta#i'' %!&i and '#ee t#adein g!!ds and se#0ies, a !$$!n $a#)et (!u&d i$%& '#ee $!0e$ent !' a%ita& and

&a!#. At this %!int, ha#$!ni=ati!n !' e#tain in0est$ent and i$$ig#ati!n issues (!u&dneed t! e ag#eed u%!n.

A t%e !' e!n!$i uni!n a%%#!ahing that !' the Eu#!%ean Uni!n (!u&d a&s! #e2ui#eha#$!ni=ed !# $utua&& #e!gni=ed standa#ds and #egu&ati!ns and %e#ha%s s!$esu%#anati!na& instituti!ns. A&th!ugh the United States and "anada sha#e $ande0e&!%ed !unt# &e0e& standa#ds, this '!#$ !' integ#ati!n (!u&d sti&& need t! e$etiu&!us& (!#)ed !ut.

F!# exa$%&e, (!u&d the United States ad!%t the $et#i sste$ t! 'u&'i&& its !&igati!ns t!ha#$!ni=e standa#ds !u&d the th#ee nati!ns a&&!( su%#anati!na& entities t! !0e##u&e

&a(s %assed "!ng#ess !# Pa#&ia$ent These 2uesti!ns i&&ust#ate the extent t! (hihN!#th A$e#ian e!n!$i integ#ati!n (!u&d a''et the g!0e#nane !' the United States,"anada and Mexi!.

7..2. 0onetary union



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32/34

An!the# disussi!n #eu##ent in $an %!&i i#&es is that !' $!neta# uni!n a$!ng theUnited States, "anada and Mexi!. This %!tentia& g!a& has een disussed in $an'!#$s. The "anadian d!&&a# !u&d e &in)ed in 0a&ue t! the US d!&&a#D "anada !u&dad!%t the US d!&&a#D !# a ne( N!#th A$e#ian u##en *a&&ed theAmero !ne%#!%!nent/ !u&d #e%&ae the US and "anadian d!&&a#s, and %e#ha%s the Mexian %es!.Gene#a&&, ta&) !' $!neta# uni!n is st#!ngest du#ing ti$es !' #e&ati0e (ea)ness !' the"anadian d!&&a# and the Mexian %es! 0is6a60is the US d!&&a#.

7... )he =A)A Superhigh4ay

7.+.3.1. The US initiati0e

A g#!(ing nu$e# !' high(as ha0e een designated as high %#i!#it !##id!#sa#ating that a&&!(s easie# aess t! 'ede#a& 'unds. L!ists see)ing t! #eate aninte#nati!na& in'#ast#utu#e ha0e #e'e##ed t! the US Nati!na& igh(a Sste$ !' high%#i!#it !##id!#sas an inte#nati!na& NAFTA Su%e#high(a Sste$.

The NAFTA Su%e#high(a&ae& su#'aed sh!#t& a'te# the signing !' NAFTA."!ne%ts and ati0it !nneted t! the NAFTA Su%e#high(aexist t!da unde#NAS"O Su%e# "!##id!#the in&ude4

Esta&ishing an inte#nati!na& high(a!##id!# sste$ that in!#%!#ates ann'!#$ati!n Tehn!&!g Sste$ *TS/

P#i0ati=ing US in'#ast#utu#e assets *(hih !%ens the d!!# t! '!#eign!(ne#shi%$anage$ent !', '!# exa$%&e, US #!ads, #idges, %!#ts, high(as, #ai&,and!# uti&it !##id!#s/

"ha#ging '!# usetaxes, t!&&s and 'ees

n#easing the use !' e$inent d!$ain t! ui&d !# (iden !##id!#s t!a!$$!date t!&&s

P#!$!ting inte#$!da&$u&ti$!da& !ne%ts

Using %u&i6%#i0ate %a#tne#shi%s *g!0e#n$ent %a#tne#ing (ith usiness he&%s t!!0e#!$e !sta&es &i)e %u&i dissent/

P#!$!ting s$a#t high(as!##id!#s(hih !inidenta&& #e2ui#es the sa$etehn!&!gies as a !ntinent6(ide su#0ei&&ane$!nit!#ing sste$ (!u&d use4These tehn!&!gies in0!&0e di#et g!0e#n$ent su%%!#t and in&ude4

o Su#0ei&&ane e2ui%$ent *'!# exa$%&e, e&et#!ni #eade#s, sens!#s,sanne#s and a$e#as/

o T#ans$itting data *'!# exa$%&e, 'ie# !%ti a&e net(!#)s and (i#e&ess

!$$uniati!ns/o "!$$and and !nt#!& ente#s a&!ng !##id!#s t! !&&et, %#!ess, and

sha#e data



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7.+.3.:. The "anadian nitiati0e



33


34/34

The "anadian initiati0e in&udes

The "anadian nte&&igent Su%e# "!##id!# *"S"OR/

The "S"OR S$a#t n&and P!#t Net(!#)

The N!#th A$e#ia Su%e#!##id!# "!a&iti!n *NAS"O/

ROT"" 66 Ri0e# !' T#ade "!##id!# "!a&iti!n igh(as 6 Sas)athe(an is aessed the e&&!(head igh(a and T#ans6

"anada igh(a Q1 and is ent#a&& &in)ed t! the "ANAME t#ans%!#tati!n!##id!# and NAFTA Su%e#high(a !nneting "anada, the U.S. and Mexi!

"anadas #!ad net(!#) !' !0e# 1.; $i&&i!n )i&!$ete#s in&udes the &!ngest high(a inthe (!#&d, the T#ans6"anada igh(a *T"/.

JLuis 9 is there a 0eican initiati#e: 9 WLK

7..'. Adding other countries to =A)A

JLuis 9 > think 4e need to add a section here 9 there is some ta%k o$ the ? "oining i$they %ea#e the (uropean nion 9 as 4e%% as some discussion o$ Austra%ia@ =e4 ea%and

9 and Chi%e 9 WLK

Documents

7 Nafta-side Agreements & Current Issues 0731