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• RTA is a wide ranging tax, tariff and trade pact that often includes investment guarantees. • The most commonly rta’s are of the preferential and free trade types are concluded in order to reduce (or eliminate) tariffs, quotas and other trade restrictions on items traded between the signatories.

Some of the rta’s
• • • • • Asia Pacific Economic Cooperation European union Association of Southeast Asian Nations North American Free Trade Agreement South Asian Free Trade Area


 Members: Canada. Washington D. Canada and Mexico creating a trilateral trade bloc in North America.  Establishment: 1 January 1994  GDP of NAFTA alliance: USD 12 trillion  NAFTA supplements: NAAEC & NAALC .C. Ottawa.INTRODUCTION NAFTA is an agreement signed by the governments of the United states. French and Spanish  Secretariats: Mexico city. Mexico & United States  Official languages: English.

George H. president .1992.S. Texas on December 17. Canadian prime minister .Carlos Salinas in San Antanio. . W.Brian Mulroney and Mexican president .BACK GROUND In 1988 Canada & the United States signed the CanadaUnited states Free Trade Agreement The American government then entered into negotiations with the Mexican government for a similar treaty Canada asked to join the negotiations in order to preserve its perceived gains under the 1988 deal The agreement NAFTA was signed by U. Bush.

regional and multilateral co-operation to expand and enhance benefits of this agreement .OBJECTIVES OF NAFTA  To eliminate trade barriers & facilitate the cross-border movements of goods and services between the parties  To promote conditions of fair competition  To substantially increase investment opportunities  To provide adequate and effective protection & enforcement of intellectual property rights in each territory  To create effective procedures for the implementation and application of this agreement .for its joint administration & for resolution of disputes  To establish a framework for further trilateral.

North American Agreement on Environmental Cooperation (NAAEC) NAAEC created Commission for Environmental Cooperation (CEC) in 1994 Development of common priorities for the protection of certain species Developing North American Conservation Action Plans for three shared marine species Provide tools such as map of terrestrial eco-regions which management agencies are using in this programs Setting out common mechanism for planning and monitoring bird conservation programs .

enhance and enforce the basic rights of workers.  Establishment of institutions & creation of formal process to raise concerns related to labor law enforcement directly with government  Undertaken a wide range of co-operative programs and technical exchanges on industrial relations.  gender equality.  occupational safety and health.  child labor.North American Agreement on Labor Co-operation  NAALC members work together to protect.  protection of migrant workers (NAALC) .

UNITED STATES: Would solidify an expanding trade relationship.Expectations and Goals MEXICO: Lower inflation and foreign debt. which would spur job creation at home and help to continue the revolutionary shift throughout Latin America away from state controlled markets toward freer markets. Would exert presidential authority.S. . thus producing less incentive for Mexicans to work illegally in the U. improve inter-American relations and advance the cause of global trade liberalization. create more wellpaying jobs for Mexicans. Mexico would become a richer market for American exporters..

NAFTA Pros + Goods/Services at lower cost + Most underdeveloped countries gain the most (i.e. standards of trade increased) + Tariffs reduced + Jobs created + Mexico’s economy is growing again .

NAFTA Cons – Fuel for peso crisis – Benefits Mexico more than the U. – U. deficit with trading partners – Loss of low-wage American jobs to Mexico – Environmental problems – Traffic congestion and delays along the borders .S.S.

Impact on: Employment • Was U. Jobs supported by exports to Mexico and Canada .S. workers’ loss Mexican workers’ gain? • Maquiladora .Primarily foreign-owned assembly plants • Jobs lost to Mexico vs.

• Minimum Wage Mexico . October 1.70 • (Global Trade Watch.21 vs US .$3.$1.$5.40 per day vs.$17. US .15 per hour • Example: Hourly compensation costs for production workers in manufacturing Mexico . 1998) . The NAFTA Index.

Inc. •Hughes Aircraft •Hyundai Precision America •IBM •Matsushita •Mattel •Maxell Corporation •Mercedes Benz •Mitsubishi Electronics Corp. •Motorola •Nissan •Philips •Pioneer Speakers •Samsonite Corporation •Samsung •Sanyo North America •Sony Electronics •Tiffany •Toshiba •VW •Xerox •Zenith .• • • • • • • • • • • • • • • • • • • • • • • 3 Day Blinds 20th Century Plastics Acer Peripherals Bali Company./Medsep BMW Canon Business Machines Casio Manufacturing Chrysler Daewoo Eastman Kodak/Verbatim Eberhard-Faber Eli Lilly Corporation Ericsson Fisher Price Ford Foster Grant Corporation General Electric Company JVC GM Hasbro Hewlett Packard Hitachi Home Electronics •Honda •Honeywell. Bayer Corp. Inc.

65 billion (for 2001 through 3rd quarter) • Increase in Mexican migrants led to increase in Border Patrol staff . • Remittances from Mexicans working in the U.: $6.2%. 26% are between the ages of 25-40. population grew 13.Impact on: Immigration • In the 1990s. U.S. with 60% growth of Mexican immigrants.S. • Among Latinos nationwide.

Impact on: Environment NAFTA Environmental Agreements: North American Agreement on Environmental Cooperation (NAAEC) .commission to enforce environmental law. Border Environment Cooperation Commission and the North American Development Bank commission to address pollution problems along the U.S.-Mexican border .

. •Your group will use the poster to present your viewpoint to the rest of the class.Is NAFTA good for everyone? Your Turn to Teach! •You will create a poster that expresses the viewpoint of the roll that you chose.

. They can move their factories to Mexico and ship the goods to the US with no tariffs. They would not have to pay the Mexican workers as much as in the United States.American Business Owners • Do you think American business owners would like NAFTA and maquiladoras? Why or why not? 1. 2.

.Mexican Business Owner • Would Mexican Business owners like NAFTA? Why or why not? 2.They would not like foreign-owned factories because they would create competition.

but the profit made by maquiladoras would go back into the US economy. 2.Mexican Government • Would a Mexican Government official like NAFTA? Why or why not? 1. Maquiladoras would provide jobs for Mexicans. NAFTA would be good for the economy of Mexico. not into Mexico’s .

the wages are very low and the working conditions are not good . It would provide a job in a country where there are not enough jobs 2. However.Mexican Factory Worker • Would a Mexican factory worker like NAFTA and maquiladoras? Why or Why Not? 1.

Many American factory workers lose their jobs because the owners move the factories to Mexico. . American factory workers cannot move to Mexico to keep their jobs.American Factory Worker • Would an American factory worker like NAFTA and maquiladoras? Why or why not? 1.

Environmentalists • Would an environmentalist like NAFTA and maquiladoras? Why or why not? 1. An environmentalist would want to make sure the US. Building factories creates pollution. . Because all three countries are neighbors. air pollution from one affects them all. and Mexico all had laws to protect the environment. Canada.

(Cheaper goods would be available to American consumers.) .American Consumer • Would the American consumer like NAFTA and maquiladoras? Why or why not? 1. Goods made in Mexico would cost a lot less because labor is cheaper there.

Thank you .