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NAFTA

NAFTA. By Brian Tedrow. What It Was About. NAFTA means North American Free Trade Agreement. Implementation started on January 1 st , 1994. It removed most trade barriers to trade. I nvestment among the USA, Canada and Mexico. USA and Mexico non-tariff’s were eliminated.

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NAFTA

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  1. NAFTA By Brian Tedrow

  2. What It Was About • NAFTA means North American Free Trade Agreement. • Implementation started on January 1st, 1994. • It removed most trade barriers to trade. • Investment among the USA, Canada and Mexico. • USA and Mexico non-tariff’s were eliminated. • Launched to reduce trading costs.

  3. Getting It to Work • North America became competitive in the global marketplace. • Ratified by the legislatures in 1993. • House approved it by 234 to 200. • Senate 60 to 38 in Nov 20th. • Signed by Bill Clinton on Dec 8th ,1993.

  4. Pro’s • Free trade increases sales and profits for U.S. businesses. • Strengthens the economy. • Free trade creates U.S. middle-class jobs. • Makes it easier to find middle class jobs. • Opportunity for the U.S. to give money the world's poorest countries.

  5. Pro’s • Removal trade barriers, tariffs, quotas and conditions. • Inherently leads to easier and swifter trade of consumer goods. • The result is an increased volume of U.S. sales. • Use of less expensive materials and labor. • Acquired through free trade leads to a lower cost to manufacture goods.

  6. Pro’s • The result is either increased profit margins. • When sales prices are not lowered. • Or increased sales caused by lower selling prices. • The Peterson Institute for International Economics estimates. • Ending all trade barriers would increase the U.S. income. • By a whopping $500 billion annually.

  7. Con’s • Individual wages start to drop. • Corporate wages start to soar. • Jobs were shipped over seas. • Jobs performed at a fraction on the cost. • 3 million jobs were lost to other countries.

  8. Affects • U.S. free trade agreements have also harmed other countries, including: • Workers in other countries are being exploited and harmed. • The environment in other countries is being defiled. • Mexican wages fell sharply. • Steep decline in employment.

  9. Affects • Impact on workers in India, Indonesia, and China has been even more severe. • With innumerable instances of starvation wages, child workers. • Slave-labor hours and perilous work conditions. • About 100,000 Costa Ricans dressed as skeletons and holding banners protested Sunday. • Against U.S. trade pact. • It would bring in cheap farm goods.

  10. How it Started • NAFTA began with President Ronald Regan. • He campaigned on a North American common market. • 1984,Congress passed the Trade and Tariff Act. • Negotiations for the Canada-U.S. Free Trade. • The agreement was signed in 1988.

  11. More Information • Mexican tariffs on U.S. imports were 250% higher than U.S. tariffs on Mexican imports. • concerns about liberalization of labor and environmental regulations. • led to the adoption of two addendums to NAFTA. • Mexican President Salinas and President Bush began negotiations for a liberalized trade. • 1991, Canada requested a trilateral agreement, which then led to NAFTA.

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