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NAFTA (North American Free Trade Agreement)

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NAFTA (NORTH AMERICAN FREE TRADE AGREEMENT) Tratado de Libre Comercio de Am rica del Norte BY TANVI PARMAR Accord de Libre- change Nord-Am ricain – PowerPoint PPT presentation

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Title: NAFTA (North American Free Trade Agreement)


1
NAFTA (North American Free Trade Agreement)
Tratado de Libre Comercio de América del Norte
  • By Tanvi Parmar

Accord de Libre-échange Nord-Américain
2
What IS NAFTA?
  • Definition
  • A trade agreement made between the governments
    of
  • Mexico, Canada and the United States for the
    purpose of
  • eliminating trade barriers among them.
  • Important Documents
  • -North American Free Trade Agreement (with
    preamble,
  • 22 chapters, 7 annexes, and articles)
  • -procedural forms

3
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 to
  • make changes and approve (protect American
    workers/U.S. partners must
  • follow same environment practices and regulations
    like theirs).
  • -By the time all the changes were made, Bill
    Clinton became president of
  • U.S. and two Canadian prime ministers came into
    office (Campbell/
  • Chretien)
  • -NAFTA was implemented on January 1, 1994 (18
    years old)

4
Purpose
  • Outlined 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

5
Who IS INVOLVED?
  • Membership
  • -U.S., Canada and Mexico
  • Leadership
  • -The presidents and prime ministers of these
    three countries meet
  • at a North American Leaders Summit and discuss
    there (summit-
  • meeting of heads of government/ state with an
    agenda of
  • discussion)
  • -Each has a Secretariat comprised of a Mexican
    Section (Mexico
  • City,), U.S. Section (Washington D.C.) and
    Canadian Section (Ottawa)
  • that is responsible for any disputes regarding
    NAFTA

6
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 in
  • goods and services every year)
  • -increases GDP
  • -foreign direct investment (when an individual
    or company owns more than
  • 10 or more of a foreign business)
  • -reduced oil and grocery prices

7
Disadvantages of membership
  • -loss of jobs ( U.S. manufacturers sent jobs to
    Mexico for
  • cheaper jobs are lost)
  • -farmers put out of business (due to subsidized
    farm
  • products)
  • -wages are suppressed (threaten to send jobs
    away)
  • -maquiladora workers are exploited
  • -environment destroyed (pressure to compete ?use
  • chemicals)

8
International impact-Mexico
  • -U.S. Jobs are now getting sent to Mexico (cheap
    labor exploitation)
  • -Local Mexican farmers cannot compete with U.S.
    subsidized farm
  • products (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

9
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, machinery
  • and parts and industrial goods)
  • -growth in imports
  • -contributed to Canadas attractiveness to
    foreign investors

10
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

11
Work Cited
  • Information
  • -The NAFTA's Impact." Foreign Affairs and
    International Trade Canada. n. page.
  • Web. lthttp//www.international.gc.ca/trade-agreem
    ents-accords-
  • commerciaux/agr-acc/nafta-alena/nafta5_section04
  • .aspx?langenviewdgt.
  • -NAFTA Secretariat. n. page. Web.
    lthttp//www.nafta-sec- alena.org/en/view.aspx?x20
    2gt.
  • -Amadeo, Kimberly. "History of NAFTA." About.com.
    n. page. Web. 24 Mar. 2012. lthttp//useconomy.abo
    ut.com/od/tradepolicy/p/NAFTA_History.htmgt.
  • -Amadeo, Kimberly. "Disadvantages of NAFTA."
    About.com. n. page. Web. 24 Mar. 2012.
    lthttp//useconomy.about.com/od/tradepolicy/p/NAFT
    A_History.htmgt.
  • -Amadeo, Kimberly. "Advantages of NAFTA."
    About.com. n. page. Web. 24 Mar. 2012.
    lthttp//useconomy.about.com/od/tradepolicy/p/NAFT
    A_History.htmgt.

12
Work Cited
  • Pictures
  • -http//www.fas.usda.gov/itp/policy/nafta/NAFTA_lo
    gosmall.jpg
  • -http//www.ustr.gov/sites/default/files/nafta.jpg
  • -http//www.augustforecast.com/wp-content/uploads/
    NAFTA_signing.jpg
  • -http//www.yesmagazine.org/new-economy/images/naf
    ta-signing-ceremony
  • federal-photo/image_preview
  • -http//graphics8.nytimes.com/images/2009/03/24/bu
    siness/24peso.650.jpg
  • -http//wikis.lib.ncsu.edu/images/0/05/NAFTA.jpg
  • -http//www.wnd.com/images/nafta2.jpg
  • -http//www.infoplease.com/images/mexico.gif
  • -https//www.cia.gov/library/publications/the-worl
    d-factbook/graphics/flags/large/ca
  • lgflag.gif
  • -https//www.cia.gov/library/publications/the-worl
    d-factbook/graphics/flags/large/us-lgflag.gif
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