What is the North American Free Trade Agreement?

In January 1994, the United States, Mexico and Canada entered into the North American Free Trade Agreement NAFTA!, creating the "argest #ree trade area and richest mar$et in the %or"d& The NAFTA is the most com'rehensi(e regiona" trade agreement e(er negotiated )y the United States and is schedu"ed to )e #u""y im'"emented )y the year *++,& In 199-, U&S& t%o.%ay trade in goods under the NAFTA %ith Canada and Mexico stood at /4*+ )i""ion..a 44 0 increase since the NAFTA %as signed&

What are some of the key goals of the NAFTA?

to reduce )arriers to trade to increase coo'eration #or im'ro(ing %or$ing conditions in North America to create an ex'anded and sa#e mar$et #or goods and ser(ices 'roduced in North America to esta)"ish c"ear and mutua""y ad(antageous trade ru"es to he"' de(e"o' and ex'and %or"d trade and 'ro(ide a cata"yst to )roader internationa" coo'eration

Why should consumers care about the NAFTA? U&S& consumers 'artici'ate in internationa" trade each day as they 'urchase goods and ser(ices that cross internationa" )orders& There#ore, they are a##ected dai"y )y %hat they 'ay #or the 'roducts and ho% sa#e they are& Trade is considered 1#ree1 or 1o'en1 %hen goods and ser(ices can mo(e into mar$ets %ithout restrictions, and 'rices are determined )y su''"y and demand& Nations sometimes erect )arriers to this #ree mo(ement o# goods and ser(ices, such as 2uotas "imiting the 2uantity o# 'roducts im'orted, or non.tari## )arriers, such as registration or "a)e"ing re2uirements, that create o)stac"es to se""ing #oreign goods& These )arriers can signi#icant"y increase the cost o# the 'roduct&

What are the benefits of the NAFTA for U.S. consumers?

more #ree trade resu"ting in greater choices in goods and ser(ices "o%er 'rices and im'ro(ed 2ua"ity 'roducts stronger hea"th and sa#ety standards im'ro(ed economic sta)i"ity in the U&S& mar$et'"ace a mar$et'"ace that is increasing"y dri(en more )y su''"y and demand than )y )arriers to commerce

What are the benefits of the NAFTA for U.S. business?

"arger North American mar$et access ne% ex'ort and in(estment o''ortunities e"imination o# tari##s3 Canadian and U&S& tari##s %ere e"iminated on January 1, 199,3 Mexico %i"" )e duty #ree )y the year *++, #or North American made 'roducts creation o# strong 1ru"es o# origin1 #or North American made 'roducts e##ecti(e 'rocedures to reso"(e trade dis'utes esta)"ishment o# com'ati)"e standards o# goods )et%een the three countries #aci"itation o# cross.)order mo(ement o# goods and ser(ices

What is the NAFTA's impact on U.S. obs? The NAFTA has created 4o)s #or American %or$ers )y ex'anding access to U&S& goods and ser(ices in the Mexican and Canadian mar$ets& In 199-, 4o)s

su''orted )y the ex'ort o# U&S& goods to Mexico and Canada increased )y an estimated 511,+++ to *&5 mi""ion #rom 1995 're.NAFTA!& In addition, ex'ort. su''orted 4o)s, %hich are in the higher 'roducti(ity, ex'ort.oriented sectors o# the economy, 'ay 150 to 1-0 more than the a(erage U&S& %age&

What are some of the industries that are e!periencing significant benefits as a result of the NAFTA? Agricultural Trade: The United States is the %or"d6s "argest and most com'etiti(e ex'orter o# agricu"tura" commodities& The NAFTA has rein#orced the trend to%ard greater integration o# the North American agricu"tura" mar$et'"ace and a more 'roducti(e and e##icient American agricu"tura" sector& U&S& consumers are )ene#iting #rom more o'en access to %ider sources o# su''"y& U&S& agricu"tura" ex'orts to North America ha(e gro%n ra'id"y since the NAFTA %ent into e##ect, and, i# recent trends continue, cou"d reach /5+ )i""ion 'er year )y *++7..u' #rom /11&- )i""ion in 199-& Automotive Industry: 8rior to the NAFTA, U&S& motor (ehic"e ex'orts to Mexico #aced restricti(e trade )a"ancing and "oca" content re2uirements, as %e"" as tari##s o# *+ 0& 9ith the reduction:e"imination o# these trade )arriers, "i)era"i;ed in(estment ru"es and 're#erentia" ru"es o# origin, U&S& 'arts and (ehic"e manu#acturers ha(e )ecome more e##icient and com'etiti(e in the North American mar$et& In 199-, the U&S& ex'orted 71,+++ ne% cars and 51,7++ ne% truc$s to Mexico a"one #or a (a"ue o# /1&* )i""ion& Textiles and Apparel: The NAFTA has increased economic acti(ity and enhanced ex'ort 'ros'ects #or texti"e and a''are" 'roducers in the United States& To )e internationa""y com'etiti(e in the g"o)a" mar$et'"ace, U&S& 'roducers o# texti"es and a''are" ha(e im'ro(ed their 'roducti(ity and concentrated on s'ecia"i;ed 'roducts& The NAFTA has ena)"ed U&S& 'roducers to o'timi;e 'roduction and manu#acturing in(estment in North America, resu"ting in a shi#t o# 'roduction #rom the Far <ast to North America, strengthening the industry6s %or"d%ide 'osition& Texti"e and a''are" trade among the three NAFTA 'artners has near"y dou)"ed since the NAFTA too$ e##ect, increasing #rom /-&4 )i""ion in 1995 to /1*&4 )i""ion in 199-&

"o# does the NAFTA affect the en$ironment? North American consumers %i"" )ene#it #rom (arious initiati(es )eing underta$en )y the NAFTA 'artners to strengthen and 'rotect the North American en(ironment& The NAFTA Commission #or <n(ironmenta" Coo'eration C<C! has dee'ened tri"atera" coo'eration on a )road range o# en(ironmenta" issues, inc"uding i""ega" trade in ha;ardous %astes, endangered %i"d"i#e, and the e"imination o# certain toxic chemica"s and 'esticides& Through the C<C, Mexico has agreed to 4oin the United States and Canada in )anning the 'esticides ==T and ch"ordane, ensuring that these "ong."i(ed toxic su)stances no "onger cross our )order& The United States and Mexico ha(e a"so "aunched a >order ??I 'rogram esta)"ishing #i(e.year o)4ecti(es #or achie(ing a c"ean )order en(ironment and a )"ue'rint #or meeting these o)4ecti(es&

Conclusion The North American Free Trade Agreement NAFTA! %i"" not )e #u""y im'"emented unti" *++,& @o%e(er, it is e(ident that NAFTA has a"ready 'ro(ed its %orth to the United States )y '"aying an im'ortant and (ita" ro"e in increasing consumer choice, im'ro(ing mar$et access #or U&S& 'roducts, and ex'anding U&S& 4o)s su''orted )y ex'orts