North American Free Trade Agreement N.A.F.T.A North American Free Trade Agreement

The Agreement: North American Free Trade Agreement (NAFTA) established a free-trade zone in North America; it was signed in 1992 by Canada, Mexico, and the United States and took effect on Jan. 1, 1994. NAFTA immediately lifted tariffs (import/export taxes) on the majority of goods produced by the signatory nations. It also calls for the gradual elimination, over a period of 15 years, of most remaining barriers to cross-border investment and to the movement of goods and services among the three countries.

NAFTA through the years…

After 20 years, we know NAFTA has achieved its core goals of expanding trade and investment between the U.S., Canada, and Mexico.

Positive: Increase in trade Trade between the NAFTA countries has quadrupled. Some of the most common goods trades are: Meat products Fruits and vegetables Beverages Processed foods Wine and liquor Live animals Clothing and textiles Fuels Electrical goods Machinery Natural resources like woods and metals

Cheaper goods Without additional trade taxes (tariffs), goods are cheaper to buy which saves families money. The average family of 4 saves between $1300-$2000 each year due to cheaper goods

Negative: Farmers loose out NAFTA has had negative impacts on farmers in Mexico who saw food prices fall based on cheap imports from U.S. This is due to better resources and more technology for US farmers. 1.3 million corn farmers in Mexico lost their jobs

U.S. workers in manufacturing and assembly industries who lost jobs

MAQUILADORAS NAFTA caused an increase of the maquiladora program, in which U.S. owned companies employ Mexican workers near the border to cheaply assemble products for "export" to the U.S. This now comprises 30% of Mexico's labor force. These workers have "no labor rights (paid less, no unions) No health protections (factories have poor safety standards and are less safe) workdays stretch out 12 hours or more, and if you are a woman, you could be forced to take a pregnancy test when applying for a job," according to Continental Social Alliance. Environmental concerns- Mexico’s government allows factories to pollute more

Maquiladoras Zone

CARTOONS

Who supports NAFTA? Government – they voted for it Industry OWNERS – factory owners that moved their factories in Mexico American Farmers that are benefiting from NAFTA exports Shipping industry

Who opposes NAFTA? Industrial States – loss of jobs Humanitarians “Patriots” – don’t like buying foreign goods MOST AMERICANS!

Resources http://www.fas.usda.gov/itp/Policy/nafta/nafta.asp http://en.wikipedia.org/wiki/North_American_Free_Trade_Agreement http://www.epi.org/content.cfm/webfeatures_snapshots_archive_12102003 http://useconomy.about.com/od/tradepolicy/p/NAFTA_Problems.htm http://useconomy.about.com/od/tradepolicy/p/NAFTA_Advantage.htm