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NAFTA: North American Free Trade

AgreementWilliam Breeman

+What is NAFTA?

NAFTA is between the US, Canada & Mexico

Mainly Economic

Signed in December 1992

In effect on January 1, 199418 Years Old

+Members (Big Shocker Here)The United States of America (USA)

The United Mexican States (Mexico)

Canada

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Purpose?Eliminate tariffs & barriers

Promote fair & free trade

Regional cooperation-SecretariatTrade disputesProtection: property & rights Settlements

Increase investments

+“Terms to Know” Dumping: selling goods in foreign markets at prices

lower than those in the home market

Antidumping (AD): a special tax is imposed on dumped goods to protect the domestic market & industry

Subsidy: money granted by the government to assist an industry or business so it can remain competitive

Countervailing Duty (CVD): imposed on imported goods to protect domestic industry by subsidized imports from other countries

Injury: caused by dumped or subsidized goods that damage the domestic market (decreased profit, lost sales, etc.)

+Is NAFTA Good Or Bad?

+NAFTA’s Advantages

No tariffs between member nations Minimal between Mexico & Canada

Mainly on agriculture (Eggs, Wheat, etc.)

Profits for businesses increased

Trade increased $2.6 billion in trade a day (2008)

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+NAFTA’s Disadvantages

Hurts citizens in member nations Lowered wages, job loss, etc.

Manufacturing & Agriculture

Increase in pollution Air, water, toxin, etc.

Mainly in USA

Increased poverty Mainly in Mexico

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+NAFTA’s Overall Impact

Overall job increase 23% Increase: ~40 million workers (2008) Lower pay

Increased trade between member countries

Decrease in domestic markets “Deindustrialization” in US & Canada

Mexico: Chiapas Rebellion Zapatistas & upset farmers

+Works Cited“Home.” NAFTANOW.ORG. 11/25/2010. 3/21/2012.

http://www.naftanow.org/default_en.asp.

“Frequently Asked Questions.” NAFTA Secretariat. 6/9/2010. 3/21/2012. http://www.nafta-sec-alena.org/en/view.aspx?x=283.

Reinert, Kenneth A., Roland-Holst, David W. “The Industrial Pollution Impacts of NAFTA.” November 2000. 3/22/2012. http://www.cec.org/programs_projects/trade_environ_econ/pdfs/Reinert.pdf.

“North American Free Trade Agreement (NAFTA).” USDA. 6/30/2012. 3/21/2012. http://www.fas.usda.gov/itp/Policy/NAFTA/nafta.asp.

“North American Free Trade Agreement (NAFTA).” Public Citizen. 2012. 3/22/2012. http://www.citizen.org/Page.aspx?pid=531.