NAFTA (North American Free Trade Agreement)

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NAFTA (North American Free Trade Agreement). Tratado de Libre Comercio de América del Norte. By Tanvi Parmar. Accord de Libre-échange Nord-Américain. What IS NAFTA?. Definition: A trade agreement made between the governments of Mexico, Canada and the United States for the purpose of - PowerPoint PPT Presentation

Text of NAFTA (North American Free Trade Agreement)

  • NAFTA (NORTH AMERICAN FREE TRADE AGREEMENT)BY TANVI PARMAR Tratado de Libre Comercio de Amrica del Norte

    Accord de Libre-change Nord-Amricain

  • WHAT IS NAFTA?Definition: A trade agreement made between the governments ofMexico, Canada and the United States for the purpose ofeliminating trade barriers among them. Important Documents:-North American Free Trade Agreement (with preamble,22 chapters, 7 annexes, and articles)-procedural forms

  • AGE OF ORGANIZATION-Negotiations between three countries since 1986 -President H.W. Bush, Prime Minister Brian Mulroney and President Carlos Salinas met together on December 17, 1992 in San Antonio, Texas in order to sign agreement.-The agreement was then given to each countrys legislative in order tomake changes and approve (protect American workers/U.S. partners mustfollow same environment practices and regulations like theirs).-By the time all the changes were made, Bill Clinton became president ofU.S. and two Canadian prime ministers came into office (Campbell/Chretien)-NAFTA was implemented on January 1, 1994 (18 years old)

  • PURPOSEOutlined by Article 102 of the agreement:-eliminate trade barriers and tariffs between three countries-promote conditions of fair competition -increase investment opportunities-provides protection and enforcement of property rights-provides procedure to resolve trade disputes-establishes framework for further improvement agreement and expand NAFTAs benefits

  • WHO IS INVOLVED?Membership:-U.S., Canada and MexicoLeadership:-The presidents and prime ministers of these three countries meetat a North American Leaders Summit and discuss there (summit-meeting of heads of government/ state with an agenda ofdiscussion)-Each has a Secretariat comprised of a Mexican Section (MexicoCity,), U.S. Section (Washington D.C.) and Canadian Section (Ottawa)that is responsible for any disputes regarding NAFTA

  • ADVANTAGES OF MEMBERSHIP-allows 450 million people to trade with each other at a lower cost-reduces inflation (by decreasing cost of imports)-creates agreements on international rights for business investors-reduces cost of trade (greatly benefit and help growth in small businesses)-increased trade in all goods and services (responsible for $1.6 trillion ingoods and services every year)-increases GDP-foreign direct investment (when an individual or company owns more than10% or more of a foreign business)-reduced oil and grocery prices

  • DISADVANTAGES OF MEMBERSHIP-loss of jobs ( U.S. manufacturers sent jobs to Mexico forcheaper; jobs are lost)-farmers put out of business (due to subsidized farmproducts)-wages are suppressed (threaten to send jobs away)-maquiladora workers are exploited-environment destroyed (pressure to compete usechemicals)

  • INTERNATIONAL IMPACT-MEXICO-U.S. Jobs are now getting sent to Mexico (cheap labor; exploitation)-Local Mexican farmers cannot compete with U.S. subsidized farmproducts (lost farms)-Mexican environment destroyed (due to competitive pressure);pollution-trade increase in products and goods (higher growth)-Mexican oil is imported for less-GDP growth (46%)-more foreign investment

  • INTERNATIONAL IMPACT- CANADA-Canadas trade with U.S. has grown 80%-U.S.-Canada and Mexico-Canada trade for $484 billion-growth in exports (successful in automotive equipment, machineryand parts and industrial goods)-growth in imports -contributed to Canadas attractiveness to foreign investors

  • WHAT DOES NAFTA MEAN FOR U.S.? -increase in GDP (.5% a year)-boosted U.S. farm exports (eliminated high Mexican tariffs)-created trade surplus in service (financial services and healthcare)-reduced oil and gas prices-increase in foreign direct investment-U.S. jobs lost/ U.S. wages suppressed-can compete with European Union-can compete with China and its trade agreements

  • WORK CITEDInformation:-The NAFTA's Impact." Foreign Affairs and International Trade Canada. n. page.Web. .-NAFTA Secretariat. n. page. Web. . -Amadeo, Kimberly. "History of NAFTA." n. page. Web. 24 Mar. 2012. . -Amadeo, Kimberly. "Disadvantages of NAFTA." n. page. Web. 24 Mar. 2012. . -Amadeo, Kimberly. "Advantages of NAFTA." n. page. Web. 24 Mar. 2012. .

  • WORK CITED:Pictures:-