1. Nafta By Jaqueline Espinosa

2. What is Nafta? In 1994, the North American Free Trade Agreement (NAFTA) came into effect, creating one of the world’s largest free trade zones and laying the foundations for strong economic growth and rising prosperity for Canada, the United States, and Mexico. Since then, NAFTA has demonstrated how free trade increases wealth and competitiveness, delivering real benefits to families, farmers, workers, manufacturers, and consumers. The NAFTA partners have created this website to provide Canadians, Americans, and Mexicans with information about how NAFTA works and the many ways in which it has improved the lives of North Americans.

3. Who is affected by nafta? By establishing the principle that U.S. corporations could relocate production elsewhere and sell back into the United States, NAFTA undercut the bargaining power of American workers, which had driven the expansion of the middle class since the end of World War II. The result has been 20 years of stagnant wages and the upward redistribution of income, wealth and political power.

4. Nafta’s purpose A regulation implemented January 1, 1994 in Mexico, Canada and the United States to eliminate most tariffs on trade between these nations. The three countries phased out numerous tariffs, (with a particular focus on those related to agriculture, textiles and automobiles), between the agreement’s implementation and January 1, 2008. NAFTA’s purpose is to encourage economic activity between the United States, Mexico and Canada.

5. What countries? NAFTA has three member countries, namely Canada, Mexico and United States.

6. When did Nafta take place? The impetus for NAFTA actually began with president Ronald Regan, who campaigned on a North American common market. In 1984, Congress passed the Trade and Tariff Act. This is important because it gave the President “fast-track" authority to negotiate free trade agreement, while only allowing Congress the ability to approve or disapprove, not change negotiating points. Canadian Prime Minister Mulroney agreed with Reagan to begin negotiations for the Canada-U.S. Free Trade Agreement, which was signed in 1988, went into effect in 1989 and is now suspended since it's no longer needed. Meanwhile, Mexican President Salinas and President Bush began negotiations for a liberalized trade between the two countries.

7. Pros of nafta NAFTA Decreased Tariffs All Three Countries Experienced Real Wage Increases NAFTA Increased Trade Between the U.S., Mexico and Canada NAFTA Increased Industrial Integration Between the U.S. and Mexico NAFTA Created Jobs for U.S. Workers

8. Cons of nafta Mexican Workers Have Benefited Less Than Expected NAFTA Lifted Tariffs & Decreased Regulations Excessive Pollution Less Competition Decreased Economical Viability 1.1

9. American business owner American Business Owners  Do you think American business owners would like NAFTA and maquiladoras?  Why or why not?  1. They can move their factories to Mexico and ship the goods to the US with no tariffs.  2. They would not have to pay the workers in Mexico as much as in the United States.  3. They would be able to sell their product for cheaper, but still make a good profit.

10. Mexican business owner Mexican Business Owner  Would Mexican business owners like NAFTA and maquiladoras?  Why?  1.They probably would like NAFTA because they would be able to trade freely.  2.They would not like foreign owned factories because they would create competition.

11. Mexican government Mexican Government  Would a Mexican Government official like NAFTA and maquiladoras?  Why or why not?  1. NAFTA would be good for the economy of Mexico.  2. Maquiladoras would provide jobs for Mexicans, but the profit made by maquiladoras would go back into the US economy, not into Mexico ’ s.  3. Maquiladoras could hurt Mexican owned businesses.

12. Mexican Factory worker Mexican Factory Worker  Would a Mexican factory worker like NAFTA and maquiladoras?  Why or Why Not?  1. It would provide a job in a country where there are not enough jobs.  2. However, the wages are very low and the working conditions are not good.

13. American Factory worker American Factory Worker  Would an American factory worker like NAFTA and maquiladoras?  Why or why not?  1. Many American factory workers lose their jobs because the owners move the factories to Mexico. American factory workers cannot move to Mexico to keep their jobs.

14. Environmentalist Environmentalists  Would an environmentalist like NAFTA and maquiladoras?  Why or why not?  1. Building factories creates pollution. An environmentalist would want to make sure the US, Canada, and Mexico all had laws to protect the environment. Since all three countries are neighbors, air pollution from one affects them all.

15. American consumer American Consumer  Would the American consumer like NAFTA and maquiladoras?  Why or why not?  1. Goods made in Mexico would cost a lot less because labor is cheaper there.