NORTH AMERICAN FREE TRADE AGGREMENTNAFTA French and Spanish Membership .091 (3rd) GDP 2007 estimate .English.C. Official languages .335.Canada.783.Total21. United States Establishment .Mexico City.Formation1 January 1994 Area .Total$15.857 billion (1st) - . D.2008 estimate445.850 km² (1st) Population . Ottawa and Washington. Mexico.AN INTRODUCTION • • • • • • • Secretariats . Canada. • The agreements were signed in December 1993 by the leaders of the three countries — Brian Mulroney of Canada. 1994. and Mexico. Carlos Salinas de Gortari of Mexico.• The North American Free Trade Agreement (NAFTA ) is a trilateral trade bloc in North America created by the governments of the United States. . – In terms of combined purchasing power parity GDP of its members. and Bill Clinton of the United States but did not come into effect until January 1. – It also is one of the most powerful. wide-reaching treaties in the world. as of 2007 the trade bloc is the largest in the world and second largest by nominal GDP comparison. NAFTA SUPPLEMENTS • The North American Free Trade Agreement (NAFTA) has two supplements:the North American Agreement on Environmental Cooperation (NAAEC) and the North American Agreement on Labour Cooperation (NAALC) • (NAAEC) was a response to environmentalists' concerns that the United States would lower its standards if the three countries did not achieve consistent environmental regulation. • (NAALC) supplements NAFTA and endeavors to create a foundation for cooperation among the three countries for the resolution of labour problems. as well as to promote greater cooperation among trade unions and social organizations in order to fight for improved labor conditions. . No MPF from Canada for NAFTA goods Can make the exporter more competitive then other nonparticipating countries 200% increase in trade among the 3 countries. Increase market access within each country.EFFECTS OF NAFTA BENEFITS • • • Benefit’s the importers by reduced or duty free goods. • • . S. Critics also argue that NAFTA has contributed to the rising levels of inequality in both the U. agribusiness • It has negative impacts on U.S. workers in manufacturing and assembly industries who lost jobs.LIMITATIONS • It has negative impacts on farmers in Mexico who saw food prices fall based on cheap imports from U.S. nor to substantially reduce poverty rates . and Mexico. • • Some economists believe that NAFTA has not been enough (or worked fast enough) to produce an economic convergence. 04%. which had a limited model for estimating the trade effects on GDP. or Mexican employment levels to NAFTA . no more than 0.S.• NAFTA slightly increased growth in output and productivity – The CBO study.8%. and for Mexico. • NAFTA had little or no impact on aggregate employment – None of the reports attributed changes in aggregate U. found that NAFTA increased annual GDP growth in the United States by no more than . and the reduction in net exports to Canada has eliminated 167.835 jobs in its first three years. NAFTA resulted in a net loss of 394. and Hispanics lost 22. Between 1993 and 1996.890 jobs. as well as white males.S. blacks lost 36.• Impact on Jobs • The study's indicates that the reduction in net exports to Mexico has eliminated 227.454 jobs to NAFTA.172 job opportunities in the same period.663 U. • The analysis finds that NAFTA has eliminated significant numbers of jobs for women and members of minority groups. numbers closely reflecting these groups' shares in manufacturing industries . In total.520 jobs. job opportunities since 1993. women lost 141. • 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 . Canada. A survey conducted by CIDE and COMEXI in Mexico showed that 64 percent of the Mexican public favored NAFTA. and Mexico is mixed.PUBLIC OPINION • Public opinion toward NAFTA in the United States. RECENT NAFTA NEWS NAFTA Toll-Highway Destroying Prime Agricultural Land • The Trans-Texas Corridor (TTC) is no ordinary highway. . separate tracks for high-speed and commuter rail. It includes separate lanes (up to six for automobiles.000 acres of rich farm and ranchland are to be destroyed. The implications of this scheme are staggering. also space for oil and gas pipelines. four for large trucks). and broadband transmission cables. The toll road would be four football fields wide. all for a privately funded highway. plus tracks for freight trains. Some experts say that up to a million people in Texas stand to lose their homes and 584. electricity wires. c but on the other hand it is also responsible for causalities like loss of jobs.D.otherwise it will create inequality in many terms which can lead to bad conditions in future for all the three countries.CONCLUSION NAFTA is one of the most successful treaties of the times in terms of growth in trade i. migration. . G. imports & exports .P e.e. Thus it is important that the treaty should be carried forward concerning about taking steps for the problems originated due to NAFTA . rising level of inequality and many others.t. PRSENTED BY - SWAMI & PRAKASH .