NAFTA

ANJU BHANWALA
309306
 NAFTA ????

 NORTH AMERICAN FREE TRADE

AGREEMENT
INTRODUCTION
Secretariats- Mexico city , Ottawa and
Washington D.C
Official language- English, French , Spanish

Membership- Canada, Mexico , US

Establish-Formation 1st Jan 1994

What is free trade

Free trade is a system

of trade policy that allow traders to act and transact
without an interference from government..and
under this prices are the reflection of true supply and
demand..
Mexican president Carlos Salinas de Gortari, United States
president George Bush, and Canadian prime minister Brian
Mulroney, left to right, look on as their trade ministers initial
the North American Free Trade Agreement (NAFTA) in San
Antonio, Texas, in 1992. Passage of the treaty in 1993 counted
as one of the Mulroney government’s most significant
achievements.
NAFTA
North American Free Trade Agreement –is a trilateral
trade bloc in north America created by the govt of
United states ,Canada and Mexico.

The agreement is signed in Dec 1993 by the

presidents of three country and it came into effect
from 1st Jan 1994
NAFTA…
NAFTA called for immediately eliminating duties on
half of all U.S. goods shipped to Mexico and gradually
phasing out other tariffs over a period of about 14 years.
Restrictions were to be removed from many categories,
including motor vehicles and automotive parts,
computers, textiles, and agriculture.
The treaty also protected intellectual property rights
(patents, copyrights, and trademarks) and outlined the
removal of restrictions on investment among the three
countries.
Provisions regarding worker and environmental
protection were added later as a result of supplemental
agreements signed in 1993.
NAFTA SUPPLIMENTS
It has two supplements-

 North American Agreement on Environment

cooperation (NAAEC)

 North American Agreement on Labor

Cooperation (NAALC)
Objective of Nafta
Eliminate barriers to trade
Fare competition in the free trade market
Increase in investment opportunity
Protection and enforcement of intellectual property
right
Resolution of disputes
Effective procedure for implementation and
application of agreement
Benefits
Increase in trade -

Boosted US farm exports

Created trade surplus in services

Reduced oil and grocery prices

Foreign direct investment

These pictures of Chilpancingo give an example of the effects
maquiladoras under NAFTA have had on communities that
were once livable.
Disadvantages
U.S jobs were lost

U.S wages were suppressed

Mexico ’s farmers were put out of business

Maquiladoras workers were exploited

Mexico’s environment deteriorated