Environmental concerns o Canada had high and Mexico had low standards Consumer protection Copyright laws Impacts of NAFTA o Massive job and industry move to Mexico o Maquiladoras (syndrome) Factory towns in Mexico on US border Cheap labor Increase in jobs and wealth in Mexico Increased US exports to Mexico Eating more meat in mexico More beef America has biggest beef market in world o American beef exports to Mexico went through the roof o Certain sectors of economy in all 3 countries recalibrated or eliminated o Meat and milk industry in mexico went under Un-Industrialization of North Eastern US o Car production o Moved south of the border o Ross Perot Was against NAFTA Sucking sound of vacuum cleaner jobs going across the border o Trade increased for all 3 countries o Massive growth for all countries o Certain sectors got damaged bad Why is the US in NAFTA? o They were the major motivator o US wants to get a bit richer o More US jobs o In 90s there was a growing EU o Trade across the board o US wanted to compete globally o China and India is growing very fast Faster than EU and NAFTA o US wants to make one across the board in the Americas o DR-CAFTA
Dominican Republic Central American Free Trade Agreement Same thing as NAFTA but different countries o FTAA Free Trade area of the Americas US is pushing this the hardest Side tracked in south ameriacs o NAFTA is the biggest trade block in the Americas MERCOSUR o Mercado comun del sur Southern common market o South America o Started in 1991 Brazil and Argentina got together o Expanding since slowly o Free trade o Free movement of labor People can move around these countries Law across states Justice system Labor laws o Much like the EU o Free movement of labor o Standardized tariff system for external trade partners Acting as a single block for international trade Facilitates and helps trade One set of papers and tariff o Member states Brazil- #1 economy Argentina- #2 economy Uruguay Paraguay Venezuela- #3 economy With a disclaimer o Uruguay has a personal problem with Venezuela All of the other countries are associate members Columbia Peru Ecuador Bolivia Chile o Invited to become full fledge but declined o Like trade block but doesn’t want to jeopardize trade with US
They are all working to become full fledged Natural Leader and Major leader Brazil o Sees itself as the US of south America o Anchor MERCURSOR is a counter to NAFTA o Brazil likes US but they want to be the head cheese o Don’t want to be under the King of US o Brazil is the leader of Brazil “The North of the South” Most economies are center left Socialist leaning Helping each other to grow Leftist trade block in the world Latin America is growing Economical and politically Brazil about to be a top 10 economy
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- Spring '08
- International Trade, World Trade Organization