P. 1


|Views: 96|Likes:
Published by Samip Varma

More info:

Published by: Samip Varma on Aug 27, 2011
Copyright:Attribution Non-commercial


Read on Scribd mobile: iPhone, iPad and Android.
download as PPT, PDF, TXT or read online from Scribd
See more
See less







857 billion (1st) - .091 (3rd) GDP 2007 estimate .AN INTRODUCTION ‡ ‡ ‡ ‡ ‡ ‡ ‡ Secretariats .850 km² (1st) Population .Total$15. Ottawa and Washington. United States Establishment . Official languages .C.Total21.783.335. Mexico. French and Spanish Membership .English.Canada.Mexico City.Formation1 January 1994 Area . D.2008 estimate445.

‡ The agreements were signed in December 1993 by the leaders of the three countries Brian Mulroney of Canada. wide-reaching treaties in the world. as of 2007 the trade bloc is the largest in the world and second largest by nominal GDP comparison. Carlos Salinas de Gortari of Mexico. and Mexico. . ± It also is one of the most powerful.‡ The North American Free Trade Agreement (NAFTA ) is a trilateral trade bloc in North America created by the governments of the United States. ± In terms of combined purchasing power parity GDP of its members. 1994. and Bill Clinton of the United States but did not come into effect until January 1. Canada.

as well as to promote greater cooperation among trade unions and social organizations in order to fight for improved labor conditions. ‡ . (NAALC) supplements NAFTA and endeavors to create a foundation for cooperation among the three countries for the resolution of labour problems.NAFTA SUPPLEMENTS ‡ The North American Free Trade Agreement (NAFTA) has two supplements:the North American Agreement on Environmental Cooperation (NAAEC) and the North American Agreement on Labour Cooperation (NAALC) ‡ (NAAEC) was a response to environmentalists' concerns that the United States would lower its standards if the three countries did not achieve consistent environmental regulation.

Clearly. U. ‡ From 1994 to 2003.S. compared to 89% from the world. imports increased by 179%. .‡ Trade and Investment Effects ‡ NAFTA is a broad agreement. but improved market access.-Mexico trade and investment have grown sharply over the past decade. including tariff reductions on merchandise trade. goal. U.S. compared to 41% to the world.S. exports to Mexico rose 91%. most tariffs have gone to zero. ‡ After ten years. except for some very sensitive (mostly agricultural) goods that have limited protection for up to 15 years.S. U. was the major U.

9 $0 NAFTA EXPORTS EU(25) & Japan IMPORTS .8 412.2 $400 $300 $200 300.9 $100 226.$800 $700 $600 BILLION DOLLARS $500 411.

± NAFTA TOTAL TRADE 1990-2004 800 713.0 2 233.540.3 627.3 477.1 612.0 700 BILLION DOLLAR 600 500 400 300 200 100 0 1990 1992 1994 1996 1998 2000 2002 2004 657.6 343.2 380.U.6 .9 503.2 265.0 602.3 421.2 293.S.1 561.

‡ ‡ . Increase market access within each country.EFFECTS OF NAFTA BENEFITS ‡ ‡ ‡ Benefit¶s the importers by reduced or duty free goods. No MPF from Canada for NAFTA goods Can make the exporter more competitive then other nonparticipating countries 200% increase in trade among the 3 countries.

Critics also argue that NAFTA has contributed to the rising levels of inequality in both the U.S. and Mexico.LIMITATIONS ‡ It has negative impacts on farmers in Mexico who saw food prices fall based on cheap imports from U. agribusiness ‡ It has negative impacts on U.S. nor to substantially reduce poverty rates ‡ ‡ . Some economists believe that NAFTA has not been enough (or worked fast enough) to produce an economic convergence. workers in manufacturing and assembly industries who lost jobs.S.

which had a limited model for estimating the trade effects on GDP.‡ NAFTA slightly increased growth in output and productivity ± The CBO study. found that NAFTA increased annual GDP growth in the United States by no more than . no more than 0. ‡ NAFTA had little or no impact on aggregate employment ± None of the reports attributed changes in aggregate U.8%.S. and for Mexico. or Mexican employment levels to NAFTA .04%.

job opportunities since 1993. numbers closely reflecting these groups' shares in manufacturing industries . and the reduction in net exports to Canada has eliminated 167. Between 1993 and 1996. NAFTA resulted in a net loss of 394. ‡ The analysis finds that NAFTA has eliminated significant numbers of jobs for women and members of minority groups. women lost 141.‡ Impact on Jobs ‡ The study's indicates that the reduction in net exports to Mexico has eliminated 227.663 U. blacks lost 36.S.172 job opportunities in the same period. and Hispanics lost 22.520 jobs. In total.835 jobs in its first three years. as well as white males.454 jobs to NAFTA.890 jobs.

in the TN status). October 2005 through September 2006 74. during fiscal year 2006 (i.247 Mexicans) were admitted into the United States for temporary employment under NAFTA (i.S.e.MOBILITY OF PERSONS According to the Department of Homeland Security Yearbook of Immigration Statistics.136 Canadians. in the treaty national's dependent (TD) status . as well as a number of third-country nationals married to Canadians and Mexicans) entered the U.e.321 of their family members (13. 2. Additionally. 17.904 Mexicans..098 foreign professionals (64.633 Canadians and 9..

A survey conducted by CIDE and COMEXI in Mexico showed that 64 percent of the Mexican public favored NAFTA. Canada.PUBLIC OPINION ‡ Public opinion toward NAFTA in the United States. ‡ The Program on International Policy Attitudes reported in a poll that 47 percent of Americans thought that NAFTA has been good for the United States. and Mexico is mixed. while 39 percent thought it had been bad for the country .

electricity wires. plus tracks for freight trains.000 acres of rich farm and ranchland are to be destroyed. It includes separate lanes (up to six for automobiles. all for a privately funded highway. Some experts say that up to a million people in Texas stand to lose their homes and 584. The toll road would be four football fields wide. four for large trucks). and broadband transmission cables. . separate tracks for high-speed and commuter rail. also space for oil and gas pipelines.RECENT NAFTA NEWS NAFTA Toll-Highway Destroying Prime Agricultural Land ‡ The Trans-Texas Corridor (TTC) is no ordinary highway. The implications of this scheme are staggering.

rising level of inequality and many others.otherwise it will create inequality in many terms which can lead to bad conditions in future for all the three countries. imports & exports .P e.CONCLUSION NAFTA is one of the most successful treaties of the times in terms of growth in trade i.t.e.c but on the other hand it is also responsible for causalities like loss of jobs. G. migration.D. . Thus it is important that the treaty should be carried forward concerning about taking steps for the problems originated due to NAFTA .


You're Reading a Free Preview

/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->