1. PRESENTION
ON
NAFTA & ASEAN
By,
Shweta
Vani

2. NAFTA
(NORTH AMERICAN FREE
TRADE AGREEMENT)

3. INTRODUCTION
NAFTA is a treaty that was ratified by the legislatures in
Canada, Mexico & U.S. & went into effect in 1994.
 It reduces or eliminates tariffs & trade barriers
among this country.
 The industries most affected includes agricultural
products, automobiles, pharmaceuticals & textiles.
 It will create the largest free trade in the world
i.e.,360 million people.
 It solves a variety of issues: such as protection of
intellectual property, the environment issues, a
special panels is created to resolve disputes of
unfair trade practices & investment restrictions.

4.  NAFTA could eventually include North & South
America; 850 million people with over $18 trillion in
annual purchasing power.
 A free trade agreement was signed by USA &
Canada in 1989 later on it was extended to Mexico
in 1994. NAFTA is expected to eliminate all tariffs &
trade barriers among these countries.
 NAFTA has a population of 363 million & hence it is
one of the significant treading areas in the globe.

5.  It was designed to promote economic growth by
spurring competition in domestic markets and
promoting investments from both domestic and
foreign sources.
 They have restructured to take advantage of
economies of scale in production & intra-industry
specialistion.
 Trade relations among Canada, Mexico & US
have broadened substantially since NAFTA’s
implementation, though experts disagree over
the extent to which this expansion is a direct
result of the deal.
 Trade with NAFTA partners now accounts for
more than 80% of Canadian & Mexican
trade, and more than a third of U.S trade.

6. OBJECTIVES OF NAFTA
 To create new business opportunities particularly in
Mexico.
 To enhance the competitive advantage of the
companies operating in USA, Mexico & Canada in
wider international markets.
 To reduce the prices of the product & service.
 To enhance industrial development & there by
employment throughout the region.
 To provide stable and predictable political
environment for the investors.
 To develop industries in Mexico in order to create
employment and to reduce migration from Mexico to
USA.

7.  To assist Mexico in earning additional foreign
exchange to meet its foreign debt burden.
 To improve & consolidate political relationship
among member countries.

8. SCOPE OF NAFTA
 Market Access
 trade Rules
 Services
 Investment
 Intellectual Property
 Dispute Settlement

9. TREAD COMMODITIES OF
NAFTA
 Livestock Products
 Grains, Oilseeds, and Products
 Vegetables
 Citrus and Products
 Fresh Fruits

10. ASEAN
(ASSOCIATION OF SOUTH-
EAST ASIAN NATIONS)

11. INTRODUCTION
The formation of ASEAN, enable the member
countries to have
1. Close cohesiveness,
2. Share their economic and human resources and
3. Achieve synergy
in the development of their
1. Agricultural sector,
2. Industrial sector and
3. Service sectors.

12. A group of six member countries, viz.,
1. Singapore,
2. Brunei,
3. Malaysia,
4. Philippines,
5. Thailand and
6. Indonesia,
agreed in Jan 1992 to establish a CEPT
plan.
 This plan helped to create an ASEAN’s free trade
area in 15yrs with effect from Jan 1993.
 The CEPT allows for tariffs cut ranging from
0.50% to 20.00% beginning with products.

13.  Vietnam also become the member of ASEAN in
1995,
 In 1997, Laos and Myanmar
 In April 1999, Cambodia got its membership, with
the object of securing mutual understanding &
cooperation.
Its Aims includes:
 Accelerating economic growth,
 Social progress,
 Cultural development,
 Protection of regional peace, stability and
opportunities among its member countries.

14.  The emergence and successful operation of EEC
and NAFTA gave impetus for forming of ASEAN.
 The ASEAN member countries have developed
economically at a fast rate in the global.
 Their strength enabled them to achieve faster
industrialization.
 ASEAN countries have the determination to develop
south-east Asia a nuclear weapons free area & a
zone of peace, freedom & neutrality.

15. OBJECTIVES OF ASEAN
The aims & purposes of ASEAN are:
 To accelerate the economic growth, social progress
and cultural development in the region.
 The spirit of equality and partnership in order to
strengthen the foundation for a prosperous and
peaceful community of South-East Asian Nations.
 To promote regional peace and stability through
abiding respect for justice and the rule of law in the
relationship among countries.
 To promote active collaboration and mutual
assistance on matters of common interest in the
economic, social, cultural, technical & administrative
fields.

16.  To provide assistance to each other in the form of
training and research facilities in the educational,
professional, technical, and administrative
spheres.
 To collaborate more effectively for the greater
utilization of their agriculture and industries, the
expansion of their trade, including the study of the
problems of international commodity trade, the
improvement of their transportation and
communications facilities and the raising of the
living standards of their peoples.

17.  To promote South-East Asian studies.
 To maintain close & beneficial cooperation with
existing international & regional organization with
similar aims & purposes, & explore all avenues for
even closer cooperation among themselves.

18. TRADE COMMODITIES IN
ASEAN
 Electric machinery, equipment and parts; sound
equipment; television equipment;
 Mineral fuels, mineral oils & products of their
distillation; bitumen substances; mineral wax;
 Nuclear reactors, boilers, machinery and mechanical
appliances; parts thereof;
 Vehicles, parts & accessories;
 Plastics & articles;
 Rubber & articles;

19.  Natural or cultured pearls, precious or
semiprecious stones, precious metals and
imitation jewelry; coin;
 Organic chemicals;
 Optical, photographic, cinematographic, measurin
g, checking, precision ,medical or surgical
instruments/apparatus; parts & accessories;
 Animal or vegetables fats and oils and their
cleavage products; prepared edible fats; animal or
vegetable waxes.

20. THANK YOU