Institute Professional Educationand Research NAFTA- NORTH AMERICAN FREE TRADE AGREEMENT PRESENTED BY: POOJA ROHANI POOJA SINGH PARIHAR POOJA VERMA RADHESHYAM PATEL
HISTORY OF NAFTANAFTA is an agreement signed by the governments of the United states, Canada and Mexico creating a trilateral trade bloc in North America.Members: Canada, Mexico & United StatesOfficial languages: English, French and SpanishSecretariats: Mexico city, Ottawa, Washington D.C.Establishment: 1 January 1994GDP of NAFTA alliance: USD 12 trillionNAFTA supplements: NAAEC & NAALC
BACKGROUND In 1988 Canada & the United States signed the Canada-United states Free Trade Agreement The American government then entered into negotiations with the Mexican government for a similar treaty Canada asked to join the negotiations in order to preserve its perceived gains under the 1988 deal The agreement NAFTA was signed by • U.S. president - George H. W. Bush, • Canadian prime minister - Brian Mulroney • Mexican president - Carlos Salinas in San Antanio, Texas on December 17,1992.
OBJECTIVES OF NAFTA To eliminate trade barriers & facilitate the cross-border movements of goods and services between the parties To promote conditions of fair competition To substantially increase investment opportunities To provide adequate and effective protection & enforcement of intellectual property rights in each territory To create effective procedures for the implementation and application of this agreement ,for its joint administration & for resolution of disputes To establish a framework for further trilateral, regional and multilateral co-operation to expand and enhance benefits of this agreement
CONTRIBUTION TO NAFTAMEMBER COUNTRY CONTRIBUTION / SUPPLYUNITED STATES Technology, Services, and data processing, medical and space research and capitalCANADA Mineral, forest products, energy and technological expertise Labors, Petroleum andMEXICO agricultural products
MEMBERS OF NAFTAThe agreement was signed by- Government of Mexico Government of Canada Government of United States
TRADE WITHIN THE GROUPProvides job opportunities :Employment in Canada grew by 11 percent, generating 1.8 million new jobs;Employment in Mexico grew by 22 percent, generating 2.2 million new jobs; anEmployment in the United States grew by more than 16.3 percent, generating 18.1 million new jobs.WORKS FOR SMALL AND MEDIUM SIZED BUSINESS97 percent of Canadian, 96 percent of U.S. and 95 percent of Mexican exporters are small and medium sized businesses.
NAFTAs partners created an independent and effective rules-based system in order to avoid disputes within the groupMain production within the group is of Electronic, Automative and Textile industries.
TRADE WITH REST OF THE WORLDINDIA’S EXPORT TO NAFTA INDIA’S IMPORT FROM in 2005-2006 NAFTA in 2005-2006 Total USD 18,817.71 millions Total USD 10472.22 millions
INDIA’S TRADE WITH USA INDIA’S MAJOR EXPORTS INDIA’S MAJOR IMPORT ITEMS ITEMS PRECIOUS STONES SOPHISTICATED MACHINERY DIAMONDS & GOLD JEWELLARY ELECTRICAL MACHINERY WOVEN APPAREL MEDICAL & SURGICAL EQUIPMENTS KNIT APPAREL AIRCARFTS, SPACE CRAFTS FISH & SEAFOOD PLASTIC IRON/STEEL PRODUCTS WOOD PULP ORGANIC CHEMICALS METALS
INDIA’S TRADE WITH CANADA INDIA’S MAJOR EXPORT INDIA’S MAJOR IMPORT ITEMS ITEMS READYMADE GARMENTS NEWSPRINT – IN ROLLS OR SHEETS GEMS,JEWELLARY & PRECIOUS COPPER ORES AND STONES CONCENTRATES ENGINEERING GOODS PEAS – DRIED AND SHELLED IRON & STEEL ARTICLES IRON SCRAP,POTASH, COPPER COFFEE WOOD PULP SPICES MINERALS ORGANIC CHEMICALS INDUSTRIAL CHEMICALS
INDIA’S TRADE WITH MEXICO INDIA’S MAJOR EXPORT ITEM INDIA’S MOJOR IMPORT ITEM TRANSPORT EQUIPMENT ARTICLES OF IRON OR STEEL DRUGS, PHARMACEUTICAL IRON & STEEL READYMADE GARMENTS PLASTIC & ARTICLES THEREOF INORGANIC/ORGANIC NUCLEAR REACTOR CHEMICALS MACHINERY & INSTRUMENTS MEDICAL OR SURGICAL EQUIPMENTS ELECTRONIC GOODS ORES,SLAG AND ASH DYES & INTERMEDIARIES ORGANIC CHEMICALS
CONCLUSION NAFTA has played an important role in the overall development of the three nations - the progressive elimination of tariffs & trade barriers,- Dispute resolution- Commitment to intellectual property & environment legislation- Mutual entry into governmental bidding & the financial and other service sector But on the other hand it is also responsible for causalities like loss of jobs, migration, rising level of inequality and many others.