NAFTA

NORTH AMERICAN FREE TRADE AGREEENT

22/01/2011

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1994. and Mexico. 22/01/2011 2 . ‡ The agreements were signed in December 1993 by the presidents of the three countries and it came into effect from 1st Jan.WHAT IS NAFTA? ‡ The North American Free Trade Agreement (NAFTA ) is a trilateral trade bloc k in North America created by the governments of the United States. Canada.

22/01/2011 3 . ‡ NAFTA one of the most successful trade agreements in history and has contributed to significant increases in agricultural trade and investment. ‡ Most comprehensive Regional Trade Agreement signed by the United States.AMENDMENT ‡ Final provisions (NAFTA) were fully implemented on January 1. 2008.

exports to Mexico rose 91%. U. most tariffs have gone to zero.S. except for some very sensitive (mostly agricultural) goods that have limited protection for up to 15 years. ‡ After fourteen years. 22/01/2011 4 . imports increased by 179%.TRADE AND INVESTMENT EFFECTS ‡ NAFTA is a broad agreement. U. compared to 41% to the world. ‡ From 1994 to 2008.S. compared to 89% from the world.

NAFTA SUPPLEMENTS ‡ The North American Agreement on Environmental Cooperation (NAAEC) ‡ The North American Agreement on Labour Cooperation (NAALC) 22/01/2011 5 .

‡ In fact. US trades more with Maxico in a month than trade with other countries in a year. two-way trade with Canada and Mexico exceeds U. trade with the European Union and Japan combined.NAFTA IN PERSPECTIVE ‡ U. ‡ US exports more in a week with Canada than with Central America in a year. 22/01/2011 6 .S. US exports more to Mexico in a day than with Paraguay in a year.S.

TRADE IN PERSPECTIVE2008 22/01/2011 7 .S.U.

S. TRADES 22/01/2011 8 .TOP TEN COUNTRIES WITH WHICH THE U.

22/01/2011 9 . ‡ LIMITATIONS.EFFECTS OF NAFTA ‡ BENEFITS.

‡ Increase market access within each country. ‡ Can make the exporter more competitive then other non-participating countries. ‡ No MPF from Canada for NAFTA goods. ‡ 200% increase in trade among the 3 countries. ‡ Benefits the importers by reduced or duty free goods.BENEFITS ‡ NAFTA eliminates trade barriers. 22/01/2011 10 .

U. NAFTA TOTAL TRADE1994-2008 22/01/2011 11 .S.

S.LIMITATONS ‡ It has negative impacts on farmers in Mexico who saw food prices fall based on cheap imports from U. ‡ Some economists believe that NAFTA has not been enough (or worked fast enough) to produce an economic convergence. ‡ It has negative impacts on U. workers in manufacturing and assembly industries who lost their jobs. agribusiness. ‡ Critics also argue that NAFTA has contributed to the rising levels of inequality in both the U.S. and Mexico. 22/01/2011 12 .S. nor to substantially reduce poverty rates.

KEY NAFTA PROVISIONS ‡ ‡ ‡ ‡ ‡ Sanitary and Phytosanitary Measures Export Subsidies Internal Support Grade and Quality Standards Rules of Origin 22/01/2011 13 .

‡ team leader.NAFTA COMPLIANCE TEAM ‡ three persons team dedicated to resolving nafta market access and compliance cases. mexico and canada desk officers ‡ the team combines experience in understanding nafta regulations with specific country expertise ‡ try to resolve problems by persuading foreign country to come into compliance voluntarily. avoiding time and effort involved in formal dispute settlement 22/01/2011 14 .

PUBLIC OPINION ‡ Public opinion towards NAFTA in the United States. A survey conducted by CIDE and COMEXI in Mexico showed that 64 percent of the Mexican public favored NAFTA. and Mexico is mixed. while 39 percent thought it had been bad for the country 22/01/2011 15 . ‡ 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. Canada.

NAFTA resulted in a net loss of 394.520 jobs. blacks lost 36.454 jobs to NAFTA. as well as white males. numbers closely reflecting these groups' shares in manufacturing industries 22/01/2011 16 .890 jobs. and Hispanics lost 22.835 jobs in its first three years. job opportunities since 1993. and the reduction in net exports to Canada has eliminated 167.172 job opportunities in the same period. Between 1993 and 1996. women lost 141.663 U.IMPACT ON JOBS ‡ The studies indicate that the reduction in net exports to Mexico has eliminated 227. In total. ‡ The analysis has found that NAFTA has eliminated significant numbers of jobs for women and members of minority groups.S.

22/01/2011 17 . The toll road would be four football fields wide. four for large trucks). electricity wires. also space for oil and gas pipelines. Some experts say that up to a million people in Texas stand to lose their homes and 584. and broadband transmission cables.000 acres of rich farm and ranchland are to be destroyed. plus tracks for freight trains. all for a privately funded highway. It includes separate lanes (up to six for automobiles. separate tracks for high-speed and commuter rail.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.

D. rising level of inequality and many others. ‡ Thus it is important that the treaty should be carried forward concerning about taking steps for the problems originated due to NAFTA .otherwise it will create inequality in many terms which can lead to bad conditions in future for all the three countries. G.e.P etc. but on the other hand it is also responsible for causalities like loss of jobs. imports & exports . migration. 22/01/2011 18 .CONCLUSION ‡ NAFTA is one of the most successful treaties of the times in terms of growth in trade i.

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