Orgs 2 Notes.docx - Different trade blocks NAFTA-North America Free Trade Agreement-simple trade block with 3 countries 1 US 2 Canada 3 Mexico-It

Orgs 2 Notes.docx - Different trade blocks NAFTA-North...

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Different trade blocks NAFTA: -North America Free Trade Agreement -simple trade block with 3 countries: 1. US 2. Canada 3. Mexico -It involves only trade -signed into law in 1994 One of the newer trade blocks -50-75% of tariffs were slashed between Mexico and the US -the US and Canada already were trade partners already -lesser developed countries have a greater strategic advantage with the ability to produce cheaper -the richer countries have an advantage in technology and in agriculture (because of tractors and subsidies) -what else needs to be negotiated/standardized between countries in a free trade area? 1. environmental concerns 2. consumer protection (consumer standards, safety) 3. copyright laws -impact of NAFTA: massive job/industry movement to Mexico -maquiladoras – factory towns in Mexico on US border -overall increased jobs/salaries/wealth in Mexico since jobs migrated there -Increased US exports to Mexico -Mexico started eating more beef and the US is the capital for beef production -certain sectors of economy in all 3 countries recalibrated or eliminated -some people blame NAFTA for the Un-industrialization of north eastern US -trade overall increased for all 3 countries
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-Why would the US need to be a part of this? The US will gain monetarily and in jobs, at the time the EU was growing, and their trade was increasing -DR-CAFTA, smaller, Dominican Republic Central American Free Trade Agreement -this and NAFTA may be merged to form FTAA – Free Trade Area of the Americas -this is still being pushed for today although it has been side tracked because of some south American countries MERCOSUR (south America) -Mercado Comun Del Sur – means southern common market -Brazil and Argentina started this -it has expanded slowly -Unlike NAFTA, they are talking about the free movement of labor, so people can move around these countries -they are working toward common labor laws etc much like the EU which does allow for the free movement of people -they have built a standardized tariff system for external trade partners -with a single tariff system, it really encourages trade -the member states (5) are brazil and Argentina as ell as Uruguay and Paraguay and Venezuela (mostly since Uruguay has a problem with Chavez in Venezuela) -top economies in South America, Brazil, Argentina, Venezuela. Everyone else is an associate member
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  • Fall '08
  • International Trade, North American Free Trade Agreement, Trade bloc, Free trade area

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