cpo quiz 5

environment and market access

trade liberation -what is the effect of trade liberation on the environment Regulatory protection -when can you restrict trade in the order to protect the environment

Trade and dependecy

what items do the US and Mexico Imports and export Dependency

Future US and mexico relations

>through the next 10 years

Canada's Diary System

-$16 Billion heavily "protectionist diary industry" placing quotas on milk production and administrating pricing sets on milk product like milk protein (set by provincial broads) that pose considerable competition with the U.S imported products and US farms -Placement of quotes protect the system for instances like and oversupply on milk. -this system is a mixture of extensive regulations and considerable cooperation between the federal and provincial government. -provincial boarder are quasi-governmental organization made up of diary farmers. decisions are revised by Canadian government to ensure reasonableness. -Regulates how much Canadian government to ensure reasonableness. -Regulates how much Canadian farmers can produce.

what is NAFTA

-1994 agreement -signed for North American free trade agreement.. -signed between canada, mexico, and the US. -creates a trilateral trade bloc. =TRUMP VIEW ON NAFTA -trump did not want to negotiate NAFTA any further -a discussion was presented by trump stating some of the request that the US exchange representative office discharged, that includes; reducing the US exchange shortage inside NAFTA, scraping NAFTA's debate goals abroad using purchase american arrangement -Trump organization also disagreed with some NAFTA request that includes the sunset clause and on the topic of dairy. -

presidental situation

>Trump >Andres Manuel LopezObrador >Banter >Republican vs democrat

Postivie economic effect

Employment creation >Under NAFTA, the two countries have established importance economic ties with trade among them tripling since the effecting of the NAFTA agreement in 1994 Foreign Direct investment >the trade and economic relations between mexico and the US has led to the provision of direct foreign investment in both countries. Culture exchange >the economic relationship between the two North america countries has also extended to the exchange of culture norms between them. people from the states over the past years been associating and interacting making them copy lifestyles and traditions from each month.

Brief History of Auto Industry trade agreements

Integration >Auto goods are the largest category of manufactured products traded between the U.S. and Canada. >Motor vehicles and vehicles parts accounted for more than 20% of the total value with Canada and Mexico in 2016 >1989: U.S. and Canada sign 1st free trade agreement that would later be rolled in NAFTA. Canada- U.S. auto pact (1965) > First step in paving the way for iron ore, steel, and aluminum trade. >allowed for the integration of the Canadian and U.S. auto industry in shared North American market >tirggered by Canadian efforts to deal auto trade between countries to skyrocket >eventually found to be contrary to international trade rules and was cancelled in 2001. NAFTA >1991: Preliminary negotiations begin >1994: NAFTA ratified >RULES OF ORIGINS >>Requires that 62.5% of a vehicle's net cost and 60% of the cost of parts originate in the NAFTA regions in order to have duty-free access to the U.S. >Market-opening provisions gradually eliminated all tariffs and most non tariff barriers on goods produced/traded within North America >Regional trade increased sharply over the treaty's first 2 decades.

Ports of Entry

Major port; Laredo Port in Texas --6 out of the 10 port are located in Texas --2012; Ahead of Detroit, Michigan regarding truck-crossing totals. Geographical Proximity; --TEXAS --California --Michigan

Back story

Mexico -1855, mexico had adopted a new period called "la reforma" (Mexico was no longer ruled by the church and the military, and gave citizens human rights) -1864, mexico would enter a period of dictatoriship lead by porfirio diaz until 1911. -1910 mexico economy was back to a failoff. the made mexico government have to borrow money from banks -1970s mexico discovered numerous sources of oil. helped mexico into becoming a bigger power, as well as growing economically. _________________________ US -US has had a mentality of laissez faire since the beginning of times was minimum business were free. this made america grow. -1930 the US experienced the great depression -in 1944, the US along with europe, canada, japan, and Australia decided to implement the bretton woods systems -1971 president Nixon decided to put an end to the bretton woods systmes, allowing the currency to float.

Specification

NAFTA established a free trade zone between the 3 countries in order to increase economic activity between them. Tariff were removed on goods produced by any of the member countries, which allowed the movement of goods and supplies across North america very easy. >particularly the majority of those goods involved agriculture, textiles, and automobiles. the elimination these tariffs was a gradually that began in 1994 until 2008. >NAFTA increased the competitiveness of the three countries within the global marketplace. >most of the U.S imported goods come from canada or mexico, canada and mexico are the second and third largest suppliers to the U.S. >One-third of the U.S. exports are designated for canada and mexico >>Machinery, vechile part, mineral fuel/ oil, etc.

What Began Some of this Tension?

Stump age rates refers to the amount of money that landowner rent these forest to companies, similar to renting an office building -In Canada, the government assists with this industry by having regulations in place for stumpage rates and directly renting to companies by preventing a middle party. -In the US there is no government interference because lumber is a private market. -since costs are differently then the profits made will differ between countries as well. Americans believe that Canada can provide an unfair advantage due to subsidies from lover stumpage rates.

World trade organization

the WTO is a crucial factor in reaching the 2030 agenda for sustainable development goals. the main target is poverty reduction, health, education, and the environment. the agenda looks at trade as having a determining impact on sustainable development. with a huge reach, the WTO can aid in spreading the message for sustainable development.

Efforts Toward a resolution

-A Memorandum of Understanding was signed by both countries in hopes to settle tension. However, Canada began to add 15% tax goods for leaving the country. Four years later Canada left the agreement. -In 1996 the softwood agreement was established and scheduled to last for 5 years. This agreement placed a limit to amount of lumber that Canada was able to export to the US. -A new agreement was made in 2006, which was also extended for another 2 year. this one limited the amount of taxes and altered trade regulations. -A possible form of assistance which countries trade among the U.S., Mexico and Canada.

what is a trade deficit

-A trade deficit is when a country imports more than it exports. it is also called a negative balance of trade. -its one way of measuring international trade. to calculate the trade deficit, subtract the total value of exports from the total of imports.

Causes

-A trade deficits occurs when a country does not produce all it needs. most nations must borrow from foreign states to pay for the imports. therefore a country with a trade deficit will also have a current account deficit. -A trade deficit also result when domestic companies manufacture in foreign countries. when raw material are shipped overseas to factories, they count as exports.

Importance of the Lumber Industry

-Accessible lumber assists with building homes, recreational activities, paper, and even when making dentures. -This industry provides environmental benefits. For instance. foresting decrease risks of forest fires. Cutting down older trees to produce lumber helps the overall health of the forest due to overcrowding. Hazards from overcrowding include potential trees falling from old age, and a lack of nutrients for younger and older trees. -the lumber industry supports the economy. in 2013, statistics Canada reported an estimated amount of 360,000 people were employed in the lumber industry.

the rest of the world

-Asia pacific: the US will pull back entirely from any partnership that was trans-pacific. Canada enactment on the CPTPP (Comprehensive and progressive agreement for trans-pacific partnership) will be an advancement in Parliament. the European union will be sanctions according to the comprehensive economic trade agreement

Background Information

-Canada and the US share the world's largest non-militarized border at 5,525 miles long (Omandi, 2018). -The United States is Canada's largest trading partner (Workman, 2018). -Canada is the US second largest trading partner in 2018, behind China (Kafchinski). -Both the United States of America and Canada began as British Colonies. -The French have had a significantly impact on both the US (Louisiana Purchase) and Canada (Francophone States).

Plans and Effects for the Future.

-Canada was reported to be the top exporter of wood products. -Tariffs imposed by Trump will affect the real estate market because potential home owners will have to pay more for these homes. for instance an estimated $3,000 will added to homes due to increase of lumber prices. -Canada is reportedly planning to request the world trade organization for assistance among a panel to settle the dispute. -A solid ruling has not been made yet between the 2, but potential solution have been thrown around.

Dairy relations and NAFTA

-Canada's heavily protected dairy system was not part of NAFTA agreement and reamains outside of it -Ultra filtered milk wasn't a part of the original NAFTA deal. it has been exported to Canada tariff-free since the trade agreement was put into law over 20 years ago. >the dispute centers around the ultra filtered milk (mostly used for cheese). -NAFTA really focused on Mexico-U.S dairy relations and opened up markets access. Characterized by three key categories: >Market access: pushed for "domestic support policies" >Sanitary and phytosanitary standards: ensured safe transportation and handle of products cross the border and inspection of milk-processing facilities. >Rule of origins: limited the exports to NAFTA countries from non-participating nations. -Canada's prices change has resulted in cross-border dairy disagreement, which has received tough criticism by Trump administration for its effects to U.S farmers in places like NY and WI.

USA-Canada Dairy Negotiations

-Dairy policy remains an important issue in wrapping up the new deal. -Current negogiation propose a near 4% for the U.S. access to Canada's dairy market. >increased market access for more American product(i.e cheese, butter, ice cream, margarine, etc.) on Canada's shelves. -Tensions with the U.S. have risen over the price change in Canadian milk protein, which has affected a considerable number of dairy farmers in the U.S. who are faced with super competitive prices, the loss in milk buyers and support from milk processing companies. -Canada's dairy supply management system aka quota program (popular in places like Quebec and Ontario) is facing deliberation on becoming more flexible and beneficial for the U.S. access. -The U.S. has asked Canada to remove the high tariff on dairy imports, but Canada dairy farmers worry cheaper foreign supplies could destroy profits and security in the market.

Difficulties/ Challenges within WTO

-Difficulties in balancing the respective interest of member states in accordance with pressing global environment concern. -(W.T.O) system's ability to mitigate international trade conflict with respect to the environmental concern was challenged by four cases.

Sustainable Development

-In an overall sense, the sustainable development concept involves the notion of development without depletion by moving beyond the ecosystem's regeneration and affordability -the concept of the sustainable development tackles the life's quality complex concept by embracing the notions of balance between the social equity, economic development, environmental conservation and equity -the vital component of sustainable development is reconciling the environment and development, promoting decisions making and integrated development, regionally, and globally, locally, or nationally.

CUSFTA Approval and Implementation

-In the US, CUSFTA passed through both the House of representatives ans the Senate rather quickly. -In Canada, CUSFTA passed through the House of commons, then immediate passage was blocked by the liberal party in the Senate. >Called for an election >Although the progressive Conservative Party did lose seats, they still had enough to pass CUSFTA this time the Senate did not stop it. -Why was CUSFTA treated so different in Canada than in the US? >Affected Canada much more that the US >>Canadian exports made up to 30% of gross national product and 80% of exports were destined to go to the US. >>American exports made up 7% of gross national product. -Immediate consequences were felt in Canada >Per the National Bureau of economic research in one-third of companies that were hit directly >>Employment shrunk by 5% >>Output fell by 11% >>Number of plants fell by 8%

Effects

-Initially a trade deficit is not a bad thing. it raises a country standard of living. its resident have across to a wider variety of goods and services for a more competitive price. -It reduces the threat of inflation since it creates lower prices. a trade deficit indicated that the country residents are feeling confident and wealthy enough to buy more than the country produces.

Metal, mexico, and canada

-Metal: Canada,Mexico, and the EU were hit with taxes on the late spring by the US trade secretary on steel and aluminum. Canada tariffs were target by $16.6 billion that includes foods product, vehicles, woods and paper product. -Mexico and Canada: Mexico greatest issue has been the car or automobile product import and producing meanwhile Canada's main issues has been the egg, poultry and dairy industry imports.

Effect

>Mexico landmark trade are maquiladoras, which are assembly plants that get ready produce goods for importance >both economies had a huge impact of trade volumes very quickly but kept a steady pace of fair prices and welfare. >easily able to transport without overseas problems from different countries as well. >Example: more cars needs to be created with a higher percentage in the US than outside. better for out working people. >the demand has satisfied more than enough the expansion of employment rates.

Principles of the world trading systems under the WTO

-Non discrimination- most favored nation (MFN) and National treatment obligation -free trade-negotiation aimed at lowering trade barriers -predictability and transparency-binding commitments, restrictions on the use of barriers to trade and transparent trade policies and regulatory framework (e.g. transparency obligation in the major trade agreements and the trade policy review mechanism) -the promotion of fair competition -MFN national treatment and rules against unfair trade practices (e.g. anti dumping) -encouragement of development and economic reform

Importance of sustainable Development

-Provides essential human needs; if at all the government insists on the utilization of the energy sources based on fossil fuels rather than sustainable and renewable options, the environmental effect and the cost of the supply of the basic needs would be, therefore, become a tall order. -Agriculture requirements: sustainable development tends to focus on methods of sustainable agriculture such as effective crop rotation and seeding techniques to promote high yields while there is the maintenance of soil integrity that produces food for the majority of the population. -Manage climate change; Sustainable development practices can mitigate climate change. These practices seek to minimize the use of sources based on fossil fuels such as natural gas, oil, and coal. -Sustain Biodiversity: Overcompensation and unsustainable development practice have a significant impact on biodiversity. The ecosystem of life is tailored in a way that ones species is dependent on another species in order to survive.

Trade and Environment

-Sustainable development and protection and preservation of the environment are fundamental goals of the WTO. they are enshrined in the Marrakesh agreement, which established the WTO, and complement the WTO's objective to reduce trade barriers and eliminate discriminatory treatment in international trade relations. -while there is no specific agreement dealing with the environment, under WTO rules member can adopt trade-related measures aimed at protecting the environment provided a number of conditions to avoid the misuse of such measures for protectionist ends are fufillied. -the WTO contributes to protection and preservation of the environment through its objective of trade openness, through its rules and enforcement mechanism, through work in different WTO bodies, and through ongoing efforts under the Doha Agenda includes specific negotiations on trade and environment and some task assigned to the regular trade and environmental committee.

Canada-US Free trade Agreement

-The Canada-US free trade agreement (CUSFTA) was signed on October 4, 1987 but did not go into effect until effect until Jan.1, 1987 -Around the time of the agreement, the US and Canada were trading approx. $150 Billion. -The goal of the agreement was to create a Free trade area between the two nations. -Revived very differently by the two nations.

NAFTA and USMCA

-The North American Free trade agreement was implemented about 5 years after CUSFTA, but the announcement of the start of negotiations took place about year and half after between the American and the Mexican president. - Used CUSFTA framework, but expanded the parameters. -NAFTA was met with significally more oppositions in the US than CUSFTA was met with. >CUSFTA vote >>House of Representative: 366;40 >>Senate:8:3:9 >NAFTA vote: >>House of representative: 234:200 >>Senate: 61:38 -Oct. 1,2018 American Trump announced concluded renegotiation of a new agreement titled the US-Mexico-Canada Agreement (USMCA).

Canada

-The us wants to reduce the trade deficit- making sure that the US isnt importing much more than it exports. -Current 34 out of 50 states Canada is the number one trade partner and 6 out of 16 states left have Canada as the number 2 trading partner.

Trade between US and Mexico

-Transport of commodities by trucks or railway= 80% of yearly US-Mexico Trade *2012: Value of Trade=390 Billion Dollars -Mexico is the 3rd largest agricultural export for the US -Mexico brings in 4/5 of its total food imports from the US

Links between trade and the Environment

-When it comes to trade and environment, the critical questions is whether environment protection and international trade are mutually exclusive or they are in conflict -two forms of links between the environment and trade have been focused on: the first link is concerned with the impact that liberation of trade has on the quality of the environment in a particular country or globally and the second one reverses this standpoint and tackles the effect that the policies of environmental protection have on international trade. -if the oversimplification of this complex debate, the support of free trade has generally argued that trade liberation has a positive impact on the environment however some measures of the environment tend to pose a protectionist to the order of free trade.

Mexico and Trump demands

-auto manufacturing: Americans reportedly wants at least 85% North America content and 50% US content in vehiles that can travel duty-free between the NAFTA countries: rules they want US manufactures exempted from. -Dairy: the US wants an end to Canada supply management regime for dairy and poultry products. -sunset clause: the US wants the new NAFTA to expire in 5 years unless the member countries agree to renew it.

what the world trade organization is and does

-beginning, the world trade organization is an organization for trading openly. the WTO agreement cover goods, services and intellectual property. it is a forum for government and countries to negotiate trade agreement. it is a place for them to settle trade dispute. it operates a system of trade rules. essentially, the WTO is a place where members pf government try to sort out the trade problems they face with each other. it is an organization for trade opening. it is a forum for government to negotiate trade agreement. it is a place for them to settle trade disputes. it operates a system of trade rules. Essentially, the WTO is a place where members government try to sort out the trade problems they face with each other. Where countries have faced open markets for trade. But the WTO is not just about the opening market and example, to protect consumers or prevent the spread of disease.

the four cases

-chile's economic right to commercial fishing in the south east pacific ocean -environmentally harmful and deceptive Chinese fishing subsides -frances plight in passing as importation ban of asbestos products -the US-shrimp trade dispute.

Conflicts between international regulation set forth by the world trade organization

-chile's plight in maintaining its right to fish in international bodies of water free from foreign state intervention is critical to exemplifying economic freedom among competing developed nations in global fishery markets. -the use of subsidies by the Chinese government to boost production of the seafood products, while seen internationally as ecologically irresponsible makes observable the serious challenge the chinese government faces in providing enough food for its growing population -the french government in banning asbestos products was instrument in challenging the globally accepted use of the product based on profitability over safety -the US challenging the importance of shrimp related and shrimp products makes obvious the global desire to tip the balance in commercial interest away from financial gain to ecological conservation

NAFTA today

-since 1994, the economy of the U.S. has changed and overcome many drastic economic hurdles. contrary to what the clinton administration believed, the trump administration does not agree that NAFTA was indeed the best course of actions. trump has renegotiated NAFTA because he believes NAFTA is responsible for the following : >>Loss of the U.S. jobs >>Suppressions of U.S. wage >the trump administration wanted to decrease the trade deficit between the U.S. and mexico and on sep.30,2018, the U.S., canada, and mexico renegotiated NAFTA and agreed on a new deal called the U.S.-Mexico-Canada agreement (USMCA) >>USMCA is purposed to grow the U.S. economy by improving U.S. opportunities to trade with Canada and Mexico. >>Provides the U.S. more access to Canada billion dollar dairy market incentivizes more domestic production of automobiles, increase environment and labor regulation, and introduces a more update intellectual property protections. >>USMCA will most likely not go into effect until 2020.

what's next?

-since the content of the USMCA is obviously secured the government bodies of every one of 3 nations needs to approve it. when trump sends the content to congress it starts a 60 day commencement to last marketing. leader Justin Trudeau and Mexican president Enrique pena nieto were assembling their lawmaking bodies as well. -Canada and the US presently can't seem to complete agreements that would end the reformatory US levies on steel and aluminum which the trump organization forced in June when it was putting weight on Canada and Mexico to sign another arrangement

the Doha Development Agenda

-the doha development round or Doha development agenda (DDA) is the trade-negotiation round of the world trade organization which commenced in Nov.2001 under then director-general mike moore. its objective was to lower trade barriers around the world, and thus faciltate increased global trade. it aims is to achieve major reform of the trade rules. the work program covers about 20 areas of lower trade. the round is also known semitrading prospect of development countries. -the Doha ministerical declaration provided the mandate for the negotiations, including on agriculture, services and an intellectual property topic, which began earlier. in Doha, minister also approved a decision on how to adress the problems developing countries face in implementing the current WTO agreement. -before the Doha ministerial, negotiations had already been under way on trade in agriculture and trade in services. these ongoing negotiation had been required under the last round of multilateral trade negotiations. However, some countries including the US, wanted to expand the agriculture and services talks to allow trade-offs and thus achieve greater trade liberation.

War of 1812

-the war of 1812 took place between the newly formed United States of America and Great Britain. -The first declared war of the US (Senate Historical Office,2017). -The British were also fighting the French in Europe > Could not spare many ships. -Some Americans wanted to annex Canada, Manifest Destiny >Canadians did not want to be annexed > The experience helped to build nationalism, a sense of national identity for the Canadians -War came to an end with the Treaty of Ghent on Dec. 24, 1814> Restored any territorial, and largely returned the pre-war status quo.

what we do...

-the world bank trade organization was founded with several agreements or laws rather, in place. Negotiated and signed by the majority of the world's trading nations. these documents providing the legal ground rules for international commerce. they are essentially contracts, binding government, the goal is to help producers conduct their exporters, and importers conduct their business, while allowing governments to meet social and environmental objective. -Currently there are over 164 countries involved in the world trade organization as of today. and only about 12 countries that have decided to remain outside of this organization. these nations do not wish to become members. they are eritrea, Kribati, Marshall islands, Micronsesia, Monaco, Naru , North Korea, Palau, San Marrino, Somalia, South Sudan, Turkmenistan, and Tuvalu.

How sustainable development is good for the WTO

-the world trade organization is an international organization that is responsible for regulating the General agreement on Tariffs and Trade implementation -The agreement of the world trade organization clearly mandates that must be in conducted "With regards to the sustainable development objectives." -the international trade expansion since WW2 has been in line with the global economic growth on a unique scale. also, it tends to coincide with a high rise in international degradation of the environment in the form of an increase in marine and air pollution, deforestation and desertification, biological diversity loss, and change in climate. -the World Organization Agreement have emphasized that the sustainable development and trade liberalization relationship is mutually supportive. Hence, even though embracing sustainable development represent a more critical role for social and environmental objective in the world trade organization. It also implies that there is a positive reading of the relations the primary aim of the WTO and these goals for trade liberalizations.

about the world trade organization

-the world trade organization operates as an intergovernmental body that regulates international trade between 164 participating member states, which emphasizes fair and non-discriminatory trading practice, biding and enforcing states to obligations, transparency, special environmental conservation protection clauses, national security, and various other vital global objectives. -balancing the interest of participating member nations with global ecological objectives is important to the world trade organization's objectives as an international conflict resolution mitigating body.

Historical Background

>More than 30 year ago, the U.S and canada began bilateral trade negotiations which resulted in the US-Canada free trade agreement, enacted on Jan 1, 1989. Shortly after, the US commenced bilateral negotiations with mexico and canada decided to join, which resulted in NAFTA. NAFTA took on jan.1, 1994 under president Bill clinton. >the legislation was being developed under george H.W. Bush's presidency but was signed into law by president clinton. the clinton administration believed that it would creat 1 million jobs within 5 years since exports play a vital role in the U.S. economic growth.

jobs and wages

>in NAFTA were no longer, mexico would endure the hardest jobs loss and steadily decrease it's economic growth. >this agreement was crucial on the omission of tariffs on more than one-half of mexico exports and vice versa for the US >the agricultural product sector has tripled and is one of the most leading importance between US and Canada. >Many Mexican employees depend on these big factories to help get their families through whatever they need.

illegal immigration corruption

>mexico has a high rate of illegal immigration into the US >Controversial issue within US and mexico goverment >Gang violance >Drug trade >El chapo >business deterrence >economical concern for the US

USMCA: The future of U.S.-Canada auto trade

>president Trump is pushing for 25% tariff on imported automobile and parts >>Trickles down to affect steel and aluminum imports >Used "Section 232" (1962) laws to impose tariffs >>laws gives the executive branch the ability to conduct investigation to "determine the effects on the national security of imports" >if tariffs are implemented, could more than quadruple the vale of product covered by the new tariffs >the peterson institute for international economic predicts anywhere from 195,000 to 600,000 jobs losses from new auto tariffs >Cost of a car would increase $455 to $6,785

prior to NAFTA

>president ronald reagon proposed the idea of common market area in north america on his campaign in 1981 >the US and canada were also benefitting from this, as it would allow canadian and american companies to build industiries, manufacturing companies and more for a cheaper price in mexico. >mexico could use an ally like the US gain more investors to the country that would make the economy better, as well as provided more jobs. expand trade create more profits. >in 1988 the canadan-US free trade agreement was signed and put into place in 11989. this was the begining of NAFTA.

the end result

>the NAFTA agreement was ideally beneficial to all parties. it was an opportunity for countries to move goods and services freely and easily amongst each other. Geographically the US shares borders with both mexico and canada, which makes them all part of a big part of land, so it makes sense that countries close to each other decide to cooperate, just like the european union.

Auto Industry market- Canada

Automotive >the auto industry directly employed 140,404 Canadians in 2016 >>Canadian-owend auto manufactures employ 51,923 people >An average of 2.5 million vehicles were built annually in Canada over the past 5 year. >In the 2015, vehicles were Canada's second largest export, accounting for $44.9 Billion worth. >>Vehicles were also Canada's No.1 import accounting for $26.2 billion. -Steel >About 13 billion metric tons are produced per year >providing about $14 billion in sales. >the volume of Canada's steel imports increased by 13% to 8.7 million metric tons from 7.7 million metric tons in 2016. -about 22,000 people are directly employed and 100,000 are indirectly employed >about half of Canada's production is exported mostly to the U.S. -Aluminum >About 3.2 million metric tons are produced per year. > providing about $12 billion in sales. >Canada's total imports of aluminum products were valued at $7.1 billion in 2017, an $800 million increase from 2016. >More than 80% of production is exported to the U.S. >About 8,300 people are directly employed and 20,000 are indirectly employed.

Auto Industry Markets-U.S.A

Automotive: >Nearly 800,000 people employed in auto manufacturing in 2016 >Half of the companies listed in the Dow Jones Industrial average depends on autos for revenue. -2017: U.S. sales remain near all-time highs with the fourth-best sales year in history at 17.1 million units sold. -Sept. 2018: leading automarkers (ranked by market share YTD) are GM, Toyota, and Ford. -Steel >The U.S producded 81.6 million metric tons of steel in 2017 >>4% increase from 2016= 78.5 million metric tons >states that produces the most steel=Indiana >Commerce Department reported lists the U.S. as the largest importer of steel >U.S ranked 4th in steel production globally -Roughly 140,000 people employed in the steel industry in the U.S. -Aluminum >The U.S. produced 785,000 metric tons of liquid aluminum in 2017 >Imported 5,046,000 metric tons of aluminum in 2017. >Industry directly employees almost 161,000 workers >U.S. is ranked 9th in aluminum production >the industry generates nearly $71 billion a year in direct economic impact

WTO and the Environment protection

WTO is mainly concerned with upholding the trade principles as it relates to the environment

Adverse effect of the trade relations

immigration >a part from the positive economic effect resulting from this bilateral relationship, this association between mexico and the US has led to a massive number of illegal immigation moving between the two countries especially form mexico to the US Insecurity and illegal trade >the free trade relationship between the US and mexico has, led to the conducting of illegal trade activities between the two countries posing a significant threat to the development of security between them. for instance, since the establishment and effecting of the agreement in 1994, there has been an increase in the number of illegal trade activities for example smuggling of narcotics especially bhang which has advance health effect on the citizens of the two nations

What is the World Trade Organization?

is an international body whose sole purpose is to promote free trade by encouraging nations to remove import tariffs and other barriers that affect trade.