FRL 4263 - Ch 14

Customs Union

In an FTA, there is free trade only in goods produced within the FTA. In a customs union, there is free trade in all goods that come through any of the union members, even imports from outside the customs union

Maquiladoras

A maquiladora is a low-cost factory in Mexico that is owned by a foreign corporation.

Intellectual Property Rights

A product of the intellect, such as an expressed idea or concept, that has commercial value.

Rules of Origin

A system of allocating certificates whereby a defined amount of a product or service must be certified as being created within that region

Free Trade Area (FTA)

An FTA develops when two or more countries agree to eliminate or phase out customs duties and other barriers to trade among the member countries. Because only products originating in the FTA countries may be shipped duty-free, there is no need for the countries to have common commercial policies toward countries outside the FTA

In the matter of cross border trucking case

Issue: Mexican truckers were being discriminated for not meeting the safety trucking requirements when traveling across US and Canada. US said they weren't discriminating. Their standards applied to everyone. Arbitration panel ruled that the US was discriminating and now they had to prove why the incoming Mexican trucks were 'unsafe'

Kirk v. New York State Department of Education

Kirk was a veterinarian from Canada that sought to be licensed to work in New York on a temporary work visa. The state did not allow him because to be licensed you had to be a citizen. NAFTA agreement preempts states law.

NAFTA

North American Free Trade Agreement; allows open trade with US, Mexico, and Canada

Samsonite Corp. v. United States

Samsonite assembled luggage to import to US

Metaclad Corporation v United States

Was Metaclad denied due process and Ruling: NAFTA provides that expropriation is prohibited w/o just compensation. It must have a purpose and due process

Common Market

also called an economic community, goes further than a customs union. While a customs union ensures the free movement of goods within the union, a common market seeks to further facilitate free competition within a group of nations. To do so, it protects the right of all enterprises and persons within the area to do business, invest capital, and sell their services anywhere within the area without discrimination on the basis of national origin

Labor Cooperation and Worker Rights

the United States insisted on a side agreement called the North American Agreement on Labor Cooperation (NAALC), intended to make labor policies more uniform by promoting the following basic labor principles in the region: Freedom of association and right to organize Right to bargain collectively Right to strike Prohibition of forced labor Protection for children and young persons Minimum working conditions Elimination of employment discrimination Equal pay for women and men Prevention of accidents and occupational disease and injuries, and compensation to workers Protection of migrant workers