NAFTA is an agreement signed by the governments of the
United states, Canada and Mexico creating a trilateral
trade bloc in North America which provides for the
elimination of tariffs on North American goods shipped
among the three countries.
2. INTRODUCTION
NAFTA is an agreement signed by the governments of the
United states, Canada and Mexico creating a trilateral
trade bloc in North America which provides for the
elimination of tariffs on North American goods
shipped among the three countries.
Members: Canada, Mexico & United States
Official languages: English, French and Spanish
Secretariats: Mexico city, Ottawa, Washington D.C.
Establishment: Signed in 1993 and went into effect on
January 1, 1994.
GDP of NAFTA alliance: USD 12 trillion
NAFTA supplements: NAAEC & NAALC
3. BACK GROUND
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 and
Mexican president - Carlos Salinas
in San Antanio, Texas on December 17,1992.
4. 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
Encourage cooperation among countries.
To establish a framework for further trilateral, regional
and multilateral co-operation to expand and enhance
benefits of this agreement
5. NORTH AMERICAN AGREEMENT ON
ENVIRONMENTAL CO-OPERATION (NAAEC)
NAAEC created Commission for Environmental Co-
operation (CEC) in 1994
Development of common priorities for the protection of
certain species
Developing North American Conservation Action Plans for
three shared marine species
Provide tools such as map of terrestrial eco-regions which
management agencies are using in this programs
Setting out common mechanism for planning and
monitoring bird conservation programs
6. NORTH AMERICAN AGREEMENT ON LABOR CO-
OPERATION (NAALC)
NAALC members work together to protect, enhance
and enforce the basic rights of workers.
Establishment of institutions & creation of formal
process to raise concerns related to labor law
enforcement directly with government
Undertaken a wide range of co-operative programs
and technical exchanges on industrial relations,
Occupational safety and health,
Child labor,
Gender equality,
Protection of migrant workers
8. NAFTA PROS
+ Goods/Services at lower cost
+ Most underdeveloped countries gain the most (i.e.
standards of trade increased)
+ Tariffs reduced
+ Jobs created
+ Mexico’s economy is growing again
+ Free trade increases sales and profits for Mexico,
Canada and the U.S.A., thus strengthening their
economies.
9. NAFTA CONS
– Fuel for peso crisis
– Benefits Mexico more than the U.S.
– U.S. deficit with trading partners
– Loss of low-wage American jobs to
Mexico(Maquiladoras)
– Environmental problems
– Traffic congestion and delays along the borders