North American Free Trade Agreement NAFTA North American Free Trade Agreement
Who? Mexico, Canada and the United States
What? An agreement designed to increase trade by doing away with tariffs and duties (taxes on foreign goods)
When? Since January 1st, 1994 (during Bill Clinton’s presidency)
Why? To increase economic activity in North America and make the three countries each other’s biggest trade partners
Talk with your partner about possible positives and negatives Pros and Cons? Talk with your partner about possible positives and negatives
Pros and Cons Easier to trade Wage increases Manufacturing in Mexico Jobs created Mexico’s wages still lower Factories relocated to Mexico Hurt Mexico’s farmers Some parts not enforced (pollution and labor rights)
On your own: 1. Explain what NAFTA is (one paragraph) 2. Is it mostly positive or negative? (one paragraph) 3.What could be done to improve it? (one paragraph) Explain your ideas in as much detail as possible. Due Tuesday, 9/1