North American Free Trade Agreement

4/23/12

GROUP MEMBERS
Dhanraj Kharde Amogh Mhatre Ashok Malgunde Prashant S Click to edit Master subtitle style Shashank Gaikwad Mamta Pawar Shital Sonawne

4/23/12

INDEX

4/23/12

WHAT IS NAFTA?
TheNorth American Free Trade

Agreement(NAFTA) is a trilateral trade bloc in North America created by the governments of the United States, Canada, and Mexico. 1993 by the presidents of the three countries and it came into effect from 1stJan. 1994

The agreements were signed in December

4/23/12

HIGHLIGHTS
Final provisions (NAFTA) were fully

implemented on January 1, 2008.

NAFTA one of the most successful trade

agreements in history and has contributed to significant increases in agricultural trade and investment.
Most comprehensive Regional Trade

Agreement signed by the United States.

4/23/12

TRADE AND INVESTMENT EFFECTS

NAFTA is a broad agreement. From 1994 to 2008, U.S. exports to Mexico

rose 91%, compared to 41% to the world. U.S. Imports increased by 179%, compared to 89% from the world. zero, except for some very sensitive (mostly agricultural) goods that have limited protection for up to 15 years.

After fourteen years, most tariffs have gone to

4/23/12

NAFTA SUPPLEMENTS
The North American Agreement on

Environmental Cooperation (NAAEC) Cooperation (NAALC)

The North American Agreement on Labour

4/23/12

NAFTA IN PERSPECTIVE
U.S. two-way trade with Canada and Mexico

exceeds U.S. trade with the European Union and Japan combined. month than trade with other countries in a year. Paraguay in a year.

In fact, US trades more with Mexico in a

US exports more to Mexico in a day than with US exports more in a week with Canada than

with Central America in a year

4/23/12

4/23/12

EFFECTS OF NAFTA
BENEFITS.

LIMITATIONS

4/23/12

BENEFITS
NAFTA eliminates trade barriers. Benefits the importers by reduced or duty free

goods.

No MPF from Canada for NAFTA goods. Can make the exporter more competitive then

other non-participating countries. countries.

200% increase in trade among the 3 Increase market access within each country.
4/23/12

4/23/12

LIMITATONS
It has negative impacts on farmers in Mexico

who saw food prices fall based on cheap imports from U.S. agribusiness.

It has negative impacts on U.S. workers in

manufacturing and assembly industries who lost their jobs. to the rising levels of inequality in both the U.S. and Mexico. been enough (or worked fast enough) to 4/23/12 produce an economic convergence, nor to

Critics also argue that NAFTA has contributed

Some economists believe that NAFTA has not

NAFTA slightly increased growth in

output and productivity

The CBO study,which had a limited model for

estimating the trade effects on GDP, found that NAFTA increased annual GDP growth in the United States by no more than .04%, and for Mexico, no more than 0.8%. aggregate employment

NAFTA had little or no impact on None of the reports attributed changes in

aggregate U.S. Or Mexican employment levels to NAFTA

4/23/12

KEY NAFTA PROVISIONS

Sanitary and Phy-tosanitary Measures Export Subsidies Internal Support Grade and Quality Standards Rules of Origin

4/23/12

NAFTA COMPLIANCE TEAM

Three persons team dedicated to resolving NAFTA market access and compliance cases. The team combines experience in

Understanding NAFTA regulations with Specific country expertise

Try to resolve problems by persuading Foreign

country to come into compliance Voluntarily, avoiding time and effort involved in formal dispute settlement
4/23/12

PUBLIC OPINION
Public opinion towards NAFTA in the United

States, Canada, and Mexico is mixed.

The Program on International Policy Attitudes

reported in a poll that 47 percent of Americans thought that NAFTA has been good for the United States, while 39 percent thought it had been bad for the country.

4/23/12

Impact on Jobs
The studies indicate that the reduction in net

exports to Mexico has eliminated 227,663 U.S. job opportunities, in Canada it has eliminated 167,172 jobs in the same period. its first three years.

NAFTA resulted in a net loss of 394,835 jobs in The analysis has found that NAFTA has

eliminated significant numbers of jobs for women and members of minority groups, as well as white males
4/23/12

RECENT NAFTA NEWS

NAFTA Toll Highway Destroying Prime

Agricultural Land

The Trans-Texas Corridor (TTC) is no ordinary

highway. The toll road would be four football fields wide. Itincludes separate lanes (up to six for automobiles, four for large trucks), plus tracks for freight trains , separate tracks for high-speed and commuter rail, also space for oil and gas pipelines, electricitywires, and broadband transmission cables.
The implications of thisscheme are

staggering. Some experts say that up to a 4/23/12 million people in Texas stand to lose their

CONCLUSION
NAFTA is one of the most successful treaties

of the times in terms of growth in trade i.e. imports & exports , G.D.P etc. but on the other hand it is also responsible for causalities like loss of jobs, migration, rising level of inequality and many others. carried forward concerning about taking steps for the problems originated due to NAFTA ,otherwise 4/23/12 it will

Thus it is important that the treaty should be

4/23/12