NAFTA

Learning Goals Explain NAFTA and assess its impact on the Canadian economy. Explain NAFTA and assess its impact on Canadian stakeholders. Explain the Organization for Economic Cooperation and Development. Explain the costs and benefits of both organizations Explain free international trade.

NAFTA In January 1994, the United States, Mexico and Canada entered into the North American Free Trade Agreement (NAFTA), creating the largest free trade area and richest market in the world.

NAFTA 1980 President of US. Ronald Reagan put forward ideas of NAFTA. 1985 The NAFTA idea get started. 1985, President of Canada Briexclusive Mulroney emphasized the idea. Later 1987-1988, Canada and US. Signed agreement. (NAFTA) 1989, January, the North America Free Trade Agreement came into effect.

NAFTA (impact on the Canadian economy) Reduce tariff for each other Remove restriction of import Stick with single transformation rule Government Procurement Agreement Encouragement of investment Expand mutual financial services Develop each other’s free shipping Encouragement and protection of intellectual property Consult DSB (dispute settlement mechanism)

Increasing in investment Growth in economy NAFTA More exports profit Increasing in investment Growth in economy

Social problems Economy problems Decrease the incomes NAFTA Social problems Economy problems Decrease the incomes Environment problems

Group Discussion Do you think the US is using the NAFTA attempt to control the whole North America (Including Canada)? Please give two reasons. (Either yes or no)

NAFTA (impact on Canadian stakeholders) Primary stakeholders: Customers, Suppliers, Employees, Competitors, Labour Unions Secondary Stakeholders: Political Parties, NGOs, Educational Institutions, Community, The Media

NAFTA Higher-paying jobs Market competition grow Improve choices for consumers Better raw materials, talent, capital and technology

NAFTA The wage gap Lost of jobs (Mexico) Pollution increased (Financial; economic growth) Little health protection, long work hours

Group Discussion We can tell NAFTA is the richest area, the three countries did cooperation works to make profit, and they have a good result. Question: Can you tell us one macrocosmic benefit?

Organization for Economic Co-operation and Development OECD Established in 1961 (Paris, France) Thirty member countries (including Canada) Getting its member countries to work together

OECD Mission: Promote economic growth Expand employment Improve the standard of living Sustain financial stability Help countries’ economic development Enhance world trade

OECD OECD's work is based on continued monitoring of events in member countries as well as outside OECD area, and includes regular projections of short and medium-term economic developments.

Benefits Provide platform to compare policy experiences Seek answers to common problems Identify good practices and co-ordinate domestic and international policies of its member countries

Costs Risks Limited development space Various policy areas interaction

Free International Trade Free trade is the process of trading goods, services, and labor freely between different countries without restrictions or having to pay additional import and export costs. Although there may be risks for consumers and countries struggling to make profit from their goods, there are some advantages.

Group Discussion If you are the top of the OECD, what will you do to lower the risks and improve the whole system?

Bibliography http://baike.baidu.com/view/191430.htm?fromId=92392 http://baike.baidu.com/view/1061203.htm https://en.wikipedia.org/wiki/Organisation_for_Economic_Co-operation_and_Development http://www.oecd.org/about/whatwedoandhow/ http://elenatauler.hubpages.com/hub/3-Positive-Effects-of-Having-Free-International-Trade