NAFTA By Bianca Conway and Andy Heckman

What is NAFTA?  NAFTA is the North American Free Trade Agreement  On Dec. 17, 1992, President Bush, Mexican President Salinas, and Canadian Prime Minister Mulroney signed NAFTA  NAFTA proposed to eliminate restrictions on the flow of goods, services, and investments in North America  NAFTA was signed into law by President Clinton on December 8, 1993, and later took effect on January 1, 1994  NAFTA is the North American Free Trade Agreement  On Dec. 17, 1992, President Bush, Mexican President Salinas, and Canadian Prime Minister Mulroney signed NAFTA  NAFTA proposed to eliminate restrictions on the flow of goods, services, and investments in North America  NAFTA was signed into law by President Clinton on December 8, 1993, and later took effect on January 1, 1994

NAFTA Objectives  For Mexico ~Secure access to the US market ~Attract new capital ~Expand exports ~Consolidate economic reforms. End to Protectionism  For Canada ~Access to US and Mexican markets  For the US ~Leverage in Europe and Japan ~Increase competitiveness and eliminate duties ~New issues: immigration, environment, drugs. ~Prevent Asian and Europe firms from bypassing US tariffs through Mexico ~Force Mexican producers to adopt foreign standards and foreign business practices  For Mexico ~Secure access to the US market ~Attract new capital ~Expand exports ~Consolidate economic reforms. End to Protectionism  For Canada ~Access to US and Mexican markets  For the US ~Leverage in Europe and Japan ~Increase competitiveness and eliminate duties ~New issues: immigration, environment, drugs. ~Prevent Asian and Europe firms from bypassing US tariffs through Mexico ~Force Mexican producers to adopt foreign standards and foreign business practices

NAFTA eliminates trade Barriers  NAFTA helped to eliminate a number of non-tariff measures affecting agricultural trade between the United States and Mexico.  Prior to January 1, 1994, the single largest barrier to U.S. agricultural sales was Mexico’s import licensing system.  However, this system was largely replaced by tariff-rate quotas or ordinary tariffs.  All agricultural tariffs between Mexico and the United States were eliminated as of January 1,  Many were immediately eliminated and others were phased out over transition periods of 5, 10, or 15 years.  NAFTA helped to eliminate a number of non-tariff measures affecting agricultural trade between the United States and Mexico.  Prior to January 1, 1994, the single largest barrier to U.S. agricultural sales was Mexico’s import licensing system.  However, this system was largely replaced by tariff-rate quotas or ordinary tariffs.  All agricultural tariffs between Mexico and the United States were eliminated as of January 1,  Many were immediately eliminated and others were phased out over transition periods of 5, 10, or 15 years.

Advantages  NAFTA removed all non-tariff hurdles between the United States and Mexico and in the process, this has allowed the U.S. agricultural products to regain market share within Mexico.  NAFTA has allowed the agricultural exports of the United States farmers to Mexico to nearly double.  In Canada NAFTA helped produce a strong Economy which lowers taxes, debt and helps people receive a higher ed.  NAFTA removed all non-tariff hurdles between the United States and Mexico and in the process, this has allowed the U.S. agricultural products to regain market share within Mexico.  NAFTA has allowed the agricultural exports of the United States farmers to Mexico to nearly double.  In Canada NAFTA helped produce a strong Economy which lowers taxes, debt and helps people receive a higher ed.

Disadvantages  NAFTA will force jobs out of the United States to Mexico where the cost of labor is much lower. Over 1 million jobs have been lost in the US since the beginning of NAFTA and 20,000 of these jobs were lost in the state of Tennessee alone.  Environmental problems ~Employment has increased and tax benefits for operating near the border have yet to be phased out. Environmental provisions of NAFTA have not worked. ~Population explosion(From 11 million today to 25 million by 2020)  Lower safety and health standards  Uneven effect on the US Texas vs. other States  Adjustment costs for the three partners  NAFTA will force jobs out of the United States to Mexico where the cost of labor is much lower. Over 1 million jobs have been lost in the US since the beginning of NAFTA and 20,000 of these jobs were lost in the state of Tennessee alone.  Environmental problems ~Employment has increased and tax benefits for operating near the border have yet to be phased out. Environmental provisions of NAFTA have not worked. ~Population explosion(From 11 million today to 25 million by 2020)  Lower safety and health standards  Uneven effect on the US Texas vs. other States  Adjustment costs for the three partners