ORGS #2.docx - Orgs#2 NAFTA \u2013 North America Free Trade Agreement Simple to complex 3 Countries o USA o Canada o Mexico ONLY trade o No political power

ORGS #2.docx - Orgs#2 NAFTA u2013 North America Free Trade...

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Orgs #2 NAFTA – North America Free Trade Agreement Simple to complex 3 Countries o USA o Canada o Mexico ONLY trade o No political power o Or people across borders Signed into law 1994 – Bill Clinton o Newer bloc o Slashed tariffs between USA and Mexico 50 to 75% Working towards zero o US and Canada No tariffs already Solidify their trade status and adding Mexico Still complicated o Development differences o Environmental standards o Technology o Wages Some have no minimum o Labor laws o Manufactured goods cheap in poorer countries o Rich Countries make higher end goods because of tech Also, cheaper agriculture in Rich Countries Tractors and subsidies o Advanced tech 1 guy 10,000 acres o 10,000 farmers in Mexico can not compete with American tractor o Subsidies Make corn cheaper than it was already o Common Standards Environmental standards Canada has high standards Mexico has low standards o Canada worried businesses would leave to pollute to compete or just pollute in general to compete with mexico o Canada fought hard to have Mexico raise their standards o Consumer Protections
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Toxic kids toys o Copy right laws Most of this sorted out Impacts of Nafta o Massive job/industry movement to Mexico Maquiladoras – Factory Towns in Mexico on US Border Take advantage of free trade More lax laws o Bikes, TV, VCR Closer to the market you’re exporting too o Increased jobs/salaries in Mexico Wages went up and more expendable capital in Mexico now Buying more American goods o Increased US exports to Mexico Eating more meat in Mexico – Beef America has the biggest Beef industry on the planet Very cheap beef Exports to Mexico went through the roof o Certain sectors of economy in all 3 countries recalibrated or eliminated Mexico Agriculture hurt Meat industry went under milk too o Un-industrialization of the united states North East USA Heavy manufacturing – cars etc moved south of the border o For cheap labor o 1992 campaign Ross Perot anti-nafta Sucking sound of jobs going south of the border He was right o Trade increased for all 3 countries Massive growth across the board for everyone imports and exports for all 3 Free trade proven here GDP in Canada grew a lot every year since NAFTA enacted Why would the US 14T GDP do this? o Major motivator USA wanted to be richer USA wanted more jobs and higher GDP Growing EU their GDP is bigger than us economy China is growing and india too with Asian trade blocs becoming huge o America wants to become huge o DR-CAFTA Dominican Republic central American free trade agreement Separate now but might merge
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FTAA Free Trade Area of the Americas USA pushing this the hardest Both Bush’s Sidetracked o Brazil not so keen on getting into bed with USA yet NAFTA is the biggest trade bloc in the Americas o DR-CAFTA smaller scale.
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