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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;

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Presentation on theme: "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;"— Presentation transcript:

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

2 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 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. 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 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.

3 NAFTA achieves its goal After 14 years, we know NAFTA has achieved its core goals of expanding trade and investment between the U.S., Canada, and Mexico.

4 Positive: Increase in trade Trade between the NAFTA signatories tripled, from $297 billion in 1993 to $903 billion in 2007. Specifically, Trade between the NAFTA signatories tripled, from $297 billion in 1993 to $903 billion in 2007. Specifically, U.S. goods exports to Canada and Mexico grew 157%, from $142 billion to $364.6 billion. U.S. goods exports to Canada and Mexico grew 157%, from $142 billion to $364.6 billion. Exports from Canada and Mexico to the U.S. grew 231%, from $151 billion in to $501 billion. Exports from Canada and Mexico to the U.S. grew 231%, from $151 billion in to $501 billion.

5 Poverty Falls, Income rises Some argue that NAFTA has been positive for Mexico, which has seen its poverty rates fall and real income rise (in the form of lower prices, especially food), Some argue that NAFTA has been positive for Mexico, which has seen its poverty rates fall and real income rise (in the form of lower prices, especially food),Mexico povertyincomeMexico povertyincome

6 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. 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.

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

8 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 or health protections, 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. 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 or health protections, 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.

9 CARTOONS

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

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

14 Resources http://www.fas.usda.gov/itp/Policy/nafta/ nafta.asp http://www.fas.usda.gov/itp/Policy/nafta/ nafta.asp http://www.fas.usda.gov/itp/Policy/nafta/ nafta.asp http://www.fas.usda.gov/itp/Policy/nafta/ nafta.asp http://en.wikipedia.org/wiki/North_Americ an_Free_Trade_Agreement http://en.wikipedia.org/wiki/North_Americ an_Free_Trade_Agreement http://en.wikipedia.org/wiki/North_Americ an_Free_Trade_Agreement http://en.wikipedia.org/wiki/North_Americ an_Free_Trade_Agreement http://www.epi.org/content.cfm/webfeatu res_snapshots_archive_12102003 http://www.epi.org/content.cfm/webfeatu res_snapshots_archive_12102003 http://www.epi.org/content.cfm/webfeatu res_snapshots_archive_12102003 http://www.epi.org/content.cfm/webfeatu res_snapshots_archive_12102003 http://useconomy.about.com/od/tradepoli cy/p/NAFTA_Problems.htm http://useconomy.about.com/od/tradepoli cy/p/NAFTA_Problems.htm http://useconomy.about.com/od/tradepoli cy/p/NAFTA_Problems.htm http://useconomy.about.com/od/tradepoli cy/p/NAFTA_Problems.htm http://useconomy.about.com/od/tradepoli cy/p/NAFTA_Advantage.htm http://useconomy.about.com/od/tradepoli cy/p/NAFTA_Advantage.htm http://useconomy.about.com/od/tradepoli cy/p/NAFTA_Advantage.htm http://useconomy.about.com/od/tradepoli cy/p/NAFTA_Advantage.htm


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