1. Free Trade Agreements NAFTA, CAFTA, Mercosur

2. Definitions Tariff- tax on imported goods

3. Definitions Free Trade Zone- a zone without tariffs or any other trade restrictions NAFTA CAFTA Mercosur

4. Free Trade Agreement Goals Unrestricted trade (no tariffs) Boost economies of member countries Help member countries become more powerful on the global market Encourage competition (market economy) Increase political ties and stability

5. NAFTA- North America Free Trade Agreement Began January 1, 1994 Mexico, US, and Canada No common currency

6. CAFTA- Central America Free Trade Agreement Began January 1, 2009 US and Central American countries (not Mexico) No common currency

7. Mercosur Began January 1, 1991 Argentina, Brazil, Uruguay, Venezuela (Paraguay was recently suspended) Must be democracy Common currency- Gaucho

8. Arguments FOR Free Trade Zones Arguments AGAINST Free Trade Zone