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NAFTA

NAFTA. Aly & Erica. Initial Purpose.

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NAFTA

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  1. NAFTA Aly & Erica

  2. Initial Purpose • The agreement opened the door for open trade, ending tariffs on various goods and services, and implementing equality between Canada, USA, and Mexico. NAFTA has allowed agricultural goods such as eggs, corn, and meats to be tariff-free. This allowed corporations to trade freely and import and export various goods on a North American scale.

  3. Participants • The foreign direct investment, of Canada and Mexico in the United States (stock) was $237.2 billion in 2009 (the latest data available), up 16.5% from 2008

  4. Purpose • Opened the door for: • open trade • ending tariffs on various goods and services • implementing equality between; Canada, USA, and Mexico. • NAFTA has allowed agricultural goods such as eggs, corn, and meats to be tariff-free. • Allowed corporations to trade freely • Import and export various goods

  5. When it was Formed • The implementation of NAFTA on January 1, 1994 brought the immediate elimination of tariffs on more than one-half of Mexico's exports to the U.S. and more than one-third of U.S. exports to Mexico. • Within 10 years of the implementation of the agreement, all U.S.-Mexico tariffs would be eliminated except for some U.S. agricultural exports to Mexico that were to be phased out within 15 years. • Most U.S.-Canada trade was already duty free. NAFTA also seeks to eliminate non-tariff trade barriers and to protect the intellectual property right of the products.

  6. Todays Role • Maquiladoras (Mexican factories that take in imported raw materials and produce goods for export) have become the landmark of trade in Mexico. These are plants that moved to this region from the United States, hence the debate over the loss of American jobs. Income in the maquiladora sector has increased 15.5% since the implementation of NAFTA in 1994. • Agriculture-Agriculture is the only section that was not negotiated trilaterally; instead, three separate agreements were signed between each pair of parties. • Mobility of persons-the number of non-immigrants in TN status present in the U.S. at the end of the fiscal year is approximately equal to the number of admissions during the year.

  7. Current International Affairs • Change in income trust taxation • On October 30, 2007, American citizens Marvin and Elaine Gottlieb filed a Notice of Intent to Submit a Claim to Arbitration under NAFTA, claiming thousands of U.S. investors lost a total of $5 billion in the fall-out from the Conservative Government's decision the previous year to change the tax rate on income trusts in the energy sector. On April 29, 2009, a determination was made that this change in tax law was not expropriation.[33] • Further criticism in Canada • A book written by Mel Hurtig published in 2002 called The Vanishing Country charged that since NAFTA's ratification more than 10,000 Canadian companies had been taken over by foreigners, and that 98% of all foreign direct investments in Canada were for foreign takeovers • Impact on Mexican farmers • In 2000, U.S. government subsidies to the corn sector totaled $10.1 billion. These subsidies have led to charges of dumping, which jeopardizes Mexican farms and the country's food self-sufficiency.

  8. Canadas Role • Reluctant member of NAFTA • Politicians don’t like to be associated with Mexico • We do little trade through NAFTA compared to the USA • Little Canadian jobs are created through NAFTA • http://www.youtube.com/watch?v=MA6KvuYB6R4

  9. Works Cited • http://www.economist.com/node/13110404

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