NAFTA Case Study

The North American Free Trade Agreement explained.

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North American Free Trade Agreement
OVERVIEW NAFTA in a Nutshell.
NAFTA is an agreement between the governments of Canada, Mexico, and the USA,
creating a trilateral trade bloc in North America.
The agreement came into action on January 1, 1994.
It is made up of two agreements; "the North American Agreement on Environmental
Cooperation" (NAAEC) and "the North American Agreement on Labor Cooperation"
It has a joint purchasing power second to none in the world, the second highest joint
GDP of any trade bloc in the world and is the world's largest free trade area, which
now links 444 million people producing $17 trillion worth of goods and services.
AIMS Fair Trade. Free Trade.
To "eliminate barriers of trade and investment between the US, Canada and
Mexico" by eliminating tariffs and duties on imports and exports.
Expand free trade (a system of trade policy that allows traders to operate without
interference from government) between the members.
MEMBERS Uncle Sam's gofers?
The members of NAFTA are Canada, Mexico, and the USA.
Canada imports $204.7 billion and Mexico imports $129.0 billion worth of US goods -
making them the top purchasers of US goods globally.
Canada exports $224.9 billon and Mexico exports $176.5 billion worth of goods to the
ISSUES Myths Vs. Facts - US government statistics may (almost definitely) be biased.
Some Claim: NAFTA has not expanded trade between the members. Fact: From 1993 to
2007, trade among the NAFTA nations more than tripled.
Some Claim: NAFTA has cost the USA jobs. Fact: US employment has risen by 24% and
unemployment has fallen by 2%.
Some Claim: NAFTA has reduced wages in Mexico. Fact: Several studies note that
average Mexican wages had increased since the pesos crisis to pre-crisis levels and
are still steadily rising in the majority of sectors.
Some Claim: NAFTA has done nothing to improve the environment. Fact: NAFTA
environmental institutions have provided $1 billion for 135 environmental
infrastructure projects increasing the federal budget for the environmental sector
by 81%.

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