2. Establishment
- Formation1 January 1994
Area
- Total21,783,850 km² (1st)
Population
- 2008 estimate 445,335,091 (3rd) -
GDP
-2007 estimate - Total$15,857 billion (1st) -
3. Is a trilateral trade bloc in North America created
by the governments of the United States,
Canada, and Mexico.
The agreements were signed in December 1993
Leaders of the three countries — Brian
Mulroney of Canada, Carlos SalinasdeGortari of
Mexico, and Bill Clinton of the United States but
did not come into effect until January 1, 1994.
4. NAFTA is a broad 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.-Mexico trade and investment have
grown sharply over the past decade.
From 1994 to 2003, U.S. exports to Mexico rose 91%,
compared to 41% to the world. U.S. imports increased
by 179%, compared to 89% from the world.
5. Benefit’s the importers by reduced or duty
free goods.
No MPF from Canada for NAFTA goods Can
make the exporter more competitive then
other non- participating countries 200%
increase in trade among the 3 countries.
Increase market access within each country.
6. It has negative impacts on farmers in Mexico who saw
food prices fall based on cheap imports from U.S.
business .
It has negative impacts on U.S. workers in
manufacturing and assembly industries who lost jobs.
Critics also argue that NAFTA has contributed to the
rising levels of inequality in both the U.S. and Mexico.
Some economists believe that NAFTA has not been
enough (or worked fast enough) to produce an
economic convergence, nor to substantially reduce
poverty rates
7. Reduction in net exports to Mexico has
eliminated 227,663 U.S. job opportunities since
1993
In total, NAFTA resulted in a net loss of 394,835
jobs in its first three years.
NAFTA has eliminated significant numbers of
jobs for women and members of minority groups,
as well as white males.
Between 1993 and 1996, women lost 141,454
jobs to NAFTA, blacks lost 36,890 jobs.
8. Public opinion toward NAFTA in the United
States, Canada, and Mexico is mixed.
A survey conducted by CIDE and COMEXI in
Mexico showed that 64 percent of the
Mexican public favoured NAFTA.
The Program on International Policy
Attitudes reported in a poll that 47 percent of
Americans thought that NAFTA has been
good for the United States, while 39 percent
thought it had been bad for the country
9. NAFTA is one of the most successful treaties of
the times in terms of growth in trade i.e. imports
& exports , GDP
On the other hand it is also responsible for
causalities like loss of jobs, migration, rising level
of inequality and many others.
It is important that the treaty should be carried
forward concerning about taking steps for the
problems originated due to NAFTA ,otherwise it
will create inequality in many terms which can
lead to bad conditions in future for all the three
countries
