ppt for North America Free Trade Agreement

7/29/2019 ppt for North America Free Trade Agreement

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NAFTANorth American Free Trade Agreement


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1st January 1994 United States, Canada

& Mexico

Worlds largest free trade area links462 million people

Trade liberalization

Elimination of tariffs

Economic Growth


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Need for NAFTA


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Eliminate barriers to trade . Facilitate the cross-border movement of

goods and services.

Increase investment opportunities. Provide protection and enforcement of

intellectual property rights.

Procedures for the resolution of tradedisputes.


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Contributions & Benefits

NAFTA


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Elimination of tariffs

Tariffs on all farm products .

U.S. automobile manufacturers have gained greater access

to Mexican market.

Telecommunication industry.


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Dispute resolution

Administration of NAFTA is handled by a commissioncomposed of ministers designated by each NAFTAcountry


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Smart Borders

To accommodate the growth in trade and commerce,Canada and the United States have signed a pact to worktogether to create a Smart Border

Collaboration in identifying and addressing securityrisks

Expediting the legitimate flow of people and goodsacross the Canada-US border.


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Protection of intellectual

property rights

NAFTA includes details regarding procedures for

Enforcement of intellectual property rights

Damages in the event of violations of such rights


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Agreement on labor

To create new employment opportunities

To protect, enhance, and enforce basic workers'

rights Affirming respect for each party's constitution

and laws

Transparency among the three countries regardingtheir respective labor laws and their enforcement ofthose laws


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Mexico Agriculture

Opening competition to heavily subsidized U.S farmindustry

Growth in Mexican farming industry

Increase in the number of Mexican migrants


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Mexican Energy Industry

Worlds sixth largest producer of crude oil

Second largest oil supplier to U.S

Insignificant domestic investments


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Canadian Companies

More than 10,000 Canadian companies taken over by

foreigners.

98% of FDI in Canada for foreign takeovers


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NAFTA Chapter 11

Chapter 11 allows corporations to sue Mexico, U.Sand Canada in case of failed investment


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U.S. Employment

U.S employment 110 million 137.6 million (1993-2008), 24% increase

U.S unemployment rate averaged 5.1 % after NAFTAvs. 7.1 % before NAFTA


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Increased Trade U.S - Canada

The volume of trade has tripled since1994

Economic growth

Businesses have become more

competitive

Millions of jobs created


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Total trilateral trade

In billions of U.S dollars -

U.S - Canada Trade grownby 156%

($199 bn 509 bn)

Canada- Mexico Tradeincreased by 339% ($4.1bn-18 bn)

U.S Mexico increase by302.6% ($85.2bn 343 bn)


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CONCLUSIONS


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Strengthened trade and economic relations

between the three countries

More competitive North American platform

Opportunities in the global marketplace

Sustaining growth against Asia and SouthAmerica


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Questions

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ppt for North America Free Trade Agreement