Tratado de Libre Comercio de

América del Norte

Accord de Libre-échange Nord-Américain

 WHAT IS NAFTA?
Definition:
A trade agreement made between the governments of
Mexico, Canada and the United States for the purpose of
eliminating trade barriers among them.
Important Documents:
-North American Free Trade Agreement (with preamble,
22 chapters, 7 annexes, and articles)
-procedural forms
THE PURPOSE OF THE AGREEMENT IS TO:
Allow free movement of goods and
services among the countries.
Promote competition in the free trade
areas.
Protect the property rights of people and
businesses in each country.
 PURPOSE
Outlined by Article 102 of the agreement:
-eliminate trade barriers and tariffs between three countries
-promote conditions of fair competition
-increase investment opportunities
-provides protection and enforcement of property rights
-provides procedure to resolve trade disputes
-establishes framework for further improvement agreement and expand
NAFTA’s benefits
 WHO IS INVOLVED?
Membership:
-U.S., Canada and Mexico
Leadership:
-The presidents and prime ministers of these three countries meet
at a North American Leaders Summit and discuss there (summit-
meeting of heads of government/ state with an agenda of
discussion)
-Each has a Secretariat comprised of a Mexican Section (Mexico
City,), U.S. Section (Washington D.C.) and Canadian Section (Ottawa)
that is responsible for any disputes regarding NAFTA
 NAFTA SUPPLEMENTS
The North American Free Trade Agreement (NAFTA) has two supplements:-
The North American Agreement on Environmental Cooperation (NAAEC) and
the North American Agreement on Labour Cooperation (NAALC).
 (NAAEC) was a response to environmentalists' concerns that the United
States would lower its standards if the three countries did not achieve
consistent environmental regulation.

 (NAALC) supplements NAFTA and endeavors to create a foundation for

cooperation among the three countries for the resolution of labour
problems, as well as to promote greater cooperation among trade unions
and social organizations in order to fight for improved labor conditions.
 ADVANTAGES OF MEMBERSHIP
-allows 450 million people to trade with each other at a lower cost
-reduces inflation (by decreasing cost of imports)
-creates agreements on international rights for business investors
-reduces cost of trade (greatly benefit and help growth in small businesses)
-increased trade in all goods and services (responsible for $1.6 trillion in
goods and services every year)
-increases GDP
-foreign direct investment (when an individual or company owns more than
10% or more of a foreign business)
-reduced oil and grocery prices
 DISADVANTAGES OF MEMBERSHIP
-loss of jobs ( U.S. manufacturers sent jobs to Mexico for
cheaper; jobs are lost)
-farmers put out of business (due to subsidized farm
products)
-wages are suppressed (threaten to send jobs away)
-maquiladora workers are exploited
-environment destroyed (pressure to compete use
chemicals)
 INTERNATIONAL IMPACT-MEXICO
-U.S. Jobs are now getting sent to Mexico (cheap labor; exploitation)
-Local Mexican farmers cannot compete with U.S. subsidized farm
products (lost farms)
-Mexican environment destroyed (due to competitive pressure);
pollution
-trade increase in products and goods (higher growth)
-Mexican oil is imported for less
-GDP growth (46%)
-more foreign investment
- Maquiladora – Plants in Mexico that manufacture for export can
temporarily import foreign items without payment of custom duties.
 INTERNATIONAL IMPACT- CANADA
-Canada’s trade with U.S. has grown 80%
-U.S.-Canada and Mexico-Canada trade for $484 billion
-growth in exports (successful in automotive equipment, machinery
and parts and industrial goods)
-growth in imports
-contributed to Canada’s attractiveness to foreign investors
 WHAT DOES NAFTA MEAN FOR U.S.?
-increase in GDP (2.3 real gdp increase last year)
-boosted U.S. farm exports (eliminated high Mexican tariffs)
-created trade surplus in service (financial services and healthcare)
-reduced oil and gas prices
-increase in foreign direct investment
-U.S. jobs lost/ U.S. wages suppressed
-can compete with European Union
-can compete with China and its’ trade agreements
US MERCHANDISE TRADE WITH NAFTA; 1993-2016
INDIA’S EXPORT TO US IS 91 % AND THAT OF
CANADA AND MEXICO IS LESS THAN 5 %

India’s India’s Import

Export to Export % Import to %

Canada 5% Canada 9%

USA 91% USA 79%

Mexico 4% Mexico 13%

 SCENARIO FOR INDIA
Import
 India was the United States' 10th largest supplier of goods imports in
2013.
 U.S. goods imports from India totaled $41.8 billion in 2013, up 3.2%
($1.3 billion) from 2012, and up 220% from 2003. U.S. imports from India
account for 1.8% of overall U.S. imports in 2013.
Export
 India's exports were 2.95 billion dollars in 2012 increasing by 24% from
2.38bn in 2011.
 India was the eighth largest export destination of Mexico in 2012.
Reliance was the importer of Mexican crude oil, as in the past several
years.
WORK CITED:
Pictures:
-https://fas.org/sgp/crs/row/R42965.pdf
-http://www.fas.usda.gov/itp/policy/nafta/NAFTA_logosmall.jpg
-http://www.ustr.gov/sites/default/files/nafta.jpg
-http://www.augustforecast.com/wp-content/uploads/NAFTA_signing.jpg
-http://www.yesmagazine.org/new-economy/images/nafta-signing-ceremony
federal-photo/image_preview
-http://graphics8.nytimes.com/images/2009/03/24/business/24peso.650.jpg
-http://wikis.lib.ncsu.edu/images/0/05/NAFTA.jpg
-http://www.wnd.com/images/nafta2.jpg
-http://www.infoplease.com/images/mexico.gif
-https://www.cia.gov/library/publications/the-world-factbook/graphics/flags/large/ca
lgflag.gif
-https://www.cia.gov/library/publications/the-world-factbook/graphics/flags/large/us-lgflag.gif

Thank-you!!