NAFTA is an agreement between the US, Canada, and Mexico that established a North American trade bloc and eliminated many tariffs to facilitate the movement of goods and services. It aims to promote fair competition, increase investment, and protect intellectual property rights. Related agreements were also formed to foster environmental cooperation (NAAEC) and protect workers' rights (NAALC). While NAFTA increased trade, productivity, and incomes in member countries, it also resulted in job losses in some sectors and increased inequality and migration. Overall, it played an important role in the development of North America but also had some adverse effects.

1. North
American
Free
Trade
Agreement
Presented by:
Parth Hirani 48
Zeel Hisoriya 49
Kunuz Hotelwala 50

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.
Members: Canada, Mexico & United States
Official languages: English, French, and
Spanish
Secretariats: Mexico City, Ottawa,
Washington D.C.
Establishment: 1 January 1994
GDP of NAFTA alliance: USD 12 trillion
NAFTA supplements: NAAEC & NAALC

3. Objectives
Objectives
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 the
resolution of disputes
To establish a framework for further trilateral, regional and
multilateral cooperation to expand and enhance the benefits of
this agreement

4. North
American
Agreement on
Environmental
Co-operation
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

5. North
American
Agreement on
Labour
Co-operation
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

6. NAFTA is a board agreement, but improved market access, including
tariff reductions on merchandise trade, was the major U.S. goal.
After ten years, most tariffs have gone to zero, except for some very
sensitive (mostly agricultural) goods that have limited protection for
up to 15 years. Clearly, U.S. imports increased by 179%, compared to
89% from the world.
From 1994 to 2003, U.S. Exports to Mexico rose 91% compare to 41% to
the world. U.S imports increased by 179%, compared to 89% from the
world.
Trade and Investment
Effects

7. Benefit’s the importers by reduced or duty free goods.
Can make the exporter more competitive then other non-
participating countries
There has been great increase in trade among the three countries
and market access within each country also increased considerably.
Mexico’s poverty rate decreased and real income increased, even
after economic crisis 1994-1995
NAFTA had been beneficial to business owners and elites in all three
countries.
Effects of NAFTA
Effects of NAFTA

8. Adverse
Effects
Increase in Productivity and Growth is not very high.
NAFTA resulted in a Net loss of 394,834 Jobs in First
three years itself.
Many Canadian and Mexican People migrates to USA
under Temporary Status (TS) & Treaty’s National
Dependent Status (TDS).
Yet there is no Net Increase in employment level.

9. Members Country Contribution/Supply
United States
Technology, Services, and data
processing, medical and space
research and capital
Canada
Mineral, forest products, energy
and technological expertise
Mexico
Labors, Petroleum and agricultural
products
Contributons to NAFTA

10. India's Export to
NAFTA in 2005-2006
Total USD 18,817.71 million
India's Import from
NAFTA in 2005-2006
Total USD 10,472.22 million
92%
USD (millions)
USA Canada Mexico
90%
9%
6%
1%
2%
USD (millions)
USA Canada Mexico

11. Conclusion
The progressive elimination of tariffs & trade
barriers,
Dispute resolution
Commitment to intellectual property &
environmental legislation
Mutual entry into governmental bidding &
the financial and other service sector
NAFTA has played an important role in the
overall development of the three nations
But on the other hand it is also responsible for
causalities like loss of jobs, migration, rising
level of inequality and many others.

12. Thank You