Tratado de Libre Comercio de
América del Norte
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 (summitmeeting 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-accordscommerciaux/agr-acc/nafta-alena/nafta5_section04
.aspx?lang=en&view=d>.
-NAFTA Secretariat. n. page. Web. <http://www.nafta-secalena.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