1. NAFTA

2. 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.

3. 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.

4. 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 , Canada and US. Signed agreement. (NAFTA)
1989, January, the North America Free Trade Agreement came into effect.

5. 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)

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

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

8. 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)

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

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

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

12. 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?

13. 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

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

15. 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.

16. 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

17. Costs
Risks
Limited development space
Various policy areas interaction

18. 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.

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

20. Bibliography http://baike.baidu.com/view/191430.htm?fromId=92392