NAFTA (North American Free Trade Agreement) Tratado de Libre Comercio de América del Norte By Tanvi Parmar Accord de Libre-échange Nord-Américain

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

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 country’s 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)

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 NAFTA’s benefits

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

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

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)

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

INTERNATIONAL IMPACT- canada -Canada’s 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 Canada’s attractiveness to foreign investors

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

Work Cited Information: -The NAFTA's Impact." Foreign Affairs and International Trade Canada. n. page. Web. <http://www.international.gc.ca/trade-agreements-accords- commerciaux/agr-acc/nafta-alena/nafta5_section04 .aspx?lang=en&view=d>. -NAFTA Secretariat. n. page. Web. <http://www.nafta-sec- alena.org/en/view.aspx?x=202>. -Amadeo, Kimberly. "History of NAFTA." About.com. n. page. Web. 24 Mar. 2012. <http://useconomy.about.com/od/tradepolicy/p/NAFTA_History.htm>. -Amadeo, Kimberly. "Disadvantages of NAFTA." About.com. n. page. Web. 24 Mar. 2012. <http://useconomy.about.com/od/tradepolicy/p/NAFTA_History.htm>. -Amadeo, Kimberly. "Advantages of NAFTA." About.com. n. page. Web. 24 Mar. 2012. <http://useconomy.about.com/od/tradepolicy/p/NAFTA_History.htm>.

Work Cited: Pictures: -http://www.fas.usda.gov/itp/policy/nafta/NAFTA_logosmall.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/nafta-signing-ceremony federal-photo/image_preview -http://graphics8.nytimes.com/images/2009/03/24/business/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-world-factbook/graphics/flags/large/ca lgflag.gif -https://www.cia.gov/library/publications/the-world-factbook/graphics/flags/large/us-lgflag.gif