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NAFTA

NAFTA. North American Free Trade Agreement. Canada, United States, and Mexico. This agreement lifted tariffs between the three member countries. Pros vs Cons. As in all things…NAFTA has its ups and its downs. What problems would you predict with an organization like NAFTA?

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NAFTA

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  1. NAFTA North American Free Trade Agreement

  2. Canada, United States, and Mexico • This agreement lifted tariffs between the three member countries.

  3. Pros vs Cons • As in all things…NAFTA has its ups and its downs. • What problems would you predict with an organization like NAFTA? • What types of benefits would you predict NAFTA would bring?

  4. General “Pros” • It opened trade between the three countries. • Lowers the price of goods because importing countries do not pay a tariff when they import. • Example: The US would rather import oil from Mexico than the Middle East because the Mexican oil is tax free The middle eastern oil would be the price of the oil PLUS tariff. • Trade has increased 200% since 1994. • A higher demand for a product opens up more jobs (more employees)

  5. General “Cons” • USA is building factories in other countries because they can pay the workers less (American companies in Mexico). This leads to fewer jobs in America. • Mexican immigration has increased because…American jobs pay more.

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