nafta 2 - NAFTA NAFTA North American North Free Trade...

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Unformatted text preview: NAFTA NAFTA North American North Free Trade Agreement Free BACKGROUND BACKGROUND • freetradeencourages: e conom growth ic productivity productivity increasein living standards incre tariff • tradeagreements havedecreased tariff and nont ariff barrie to trade rs barrie BACKGROUND (cont’d) BACKGROUND • • • • NAFTA be ee ctiveJanuary 1, 1994 cam ffe FTA (Fre TradeAgre m nt of 1989) e ee Tariffs e inate (othe phase ove 5 to 15 ye lim d rs dr ars) C ntration on Environm ntal I ssue once e s THE “THREE AMIGOS” THE U.S . Population pe capita GDP r e xports (% GDP) ye of e ars duc. (pe 1000 pe ) r ople C anada 30 20,401 30.4 98 586 6.8 Brian Mulrone y Me xico 93 7,239 16.4 38 70 18 C arlos S alinas de 260 25,512 7.7 100 553 8.5 Bill Clinton te phone le s (pe 1000 pe ) r ople infant m ortality (pe 1000 births) r le rs ade EXPORTS EXPORTS UNI TED S TATES • Machinery • Motor vehicles • Food • Chemicals • Aircraft C ANADA MEXI C O Exports • Metal and m tal ore e • Forest products • Chemicals • Food • Petroleum • Coffee • Metal ore OBJECTIVES OBJECTIVES • • • • • • Re ovem m ajority of tradebarrie rs C m e to se om itm nt rvicequality Ope rational e fficie and e ctive ss ncy ffe ne S ngthe Environm ntal Re tre n e gulation Prom De lopm nt ote ve e C atene e ploym nt opportunitie re wm e s KEY PROVISIONS KEY • • • • S anitary and Phytosanitary Me asure s Export S ubsidie s I nte S rnal upport Gradeand Quality S tandards ADVANTAGES ADVANTAGES • • • • • Re ovem barrie m ost rs I m s discipline pose s S adily growing m t te arke Tradere ductions S cial safe pe guards • I ncreasemarket size Growth • Growth in demand for • Manufacture Goods d Manufacture Tough rule of origin to Tough s e nsurethat m um axim be fits ne be DISADVANTAGES DISADVANTAGES Availability • Availability of inexpensive labour labour UScom titiveadvantage pe Loss of jobs I ncom ine e quality • • • STATISTICS STATISTICS • 2001 $12.1 billion Me $ C xico anada $12.1 $2.5 billion C anada $ Me xico $2.5 $675.8 billion C anada $ US $675.8 $261 billion Me xico US • TODAY 86.6%of m rchandisee e xports go to NAFTA partne rs 2.3 m illion jobs cre s in C ate anada RESULTS RESULTS • American Agreement on Environmental Cooperation • North American Agreement for Labour Cooperation ARTICLES ARTICLES ...
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This note was uploaded on 04/23/2011 for the course ECON 100 taught by Professor Mr.smith during the Spring '11 term at DeVry Sandy.

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