NAFTA

Advantages of Nafta

Increased the competitiveness of the 3 countries in the global marketplace Allows them to compete with China and EU. NAFTA has been beneficial to the North American economy and average citizen, but did possible harmed a small minority of workers exposed to trade competition (moved their factories to mexico for cheaper labor) Grocery prices went down because NAFTA lowered the cost of imports from Mexico to Canada. Oil prices went down because the US could now import much of its oil from Mexico and Canada.

What Mexico and Canada want

Mexico wants their trucks on US roads, which was promised in the first NAFTA agreement. Canada wants US to end tariffs on its lumber and dairy products. Mexico and Canada both want increased access for business travellers.

Consequences of Trump withdrawing from NAFTA

Possible price increases for consumers Re establishing trade barriers will badly affect the US economy and cost jobs and Mexico would be severely affected by job loss. American farmers could be jeopardized since they export a lot to Mexico Exports to both Canada and Mexico would decrease

What NAFTA does

Grants most favoured nation status: All countries must give all included parties equal treatment. Eliminates tariffs on imports and exports. Some special rules to regulate trade in farm products, automobiles and clothing. Exporters much get Certificates of Origin to wave tariffs. All exports must originate within the three given countries not to get taxed Establishes procedures to resolve trade disputes. All countries must respect patents, trademarks and copyrights.

Problems due to NAFTA

US jobs were lost = Mexico US wages were suppressed when companies threatened to move to Mexico Mexico´s farmers were put out of business: when NAFTA removed trade tariffs, companies exported grains were exported below cost. Mexican farmers could not compete. Labor in Mexico was cheap because workers had no labour rights or health protection. Thanks to NAFTA almost a third of Mexico´s labour force works in poor condition in these manufacturing jobs.

What is NAFTA and history

The North American Free Trade Agreement is free trade agreement between Canada, Mexico & the US making it the largest free trade agreement in terms of GDP. Established January 1, 1994 Trade agreements that eliminates tariffs and therefore increases opportunities. 2 large developed nations and one emerging economy