NAFTA

North American Free Trade Agreement

• Came into effect in1994.• Canada, United States and Mexico• World’s largest free trade zones.

objectives• Eliminate barriers• Facilitate cross border movement of goods

and services• Promote fair competition within the area• Increase investment opportunities• Enforcement of IP within area• Joint administration• Effective conflict resolution

• Area - Total21,783,850 km² (1st)• Secretariats - Mexico City, Ottawa and Washington, D.C.• Official languages - English, French and Spanish• NAFTA Economy- Covers a North American economy with a

combined output of US$17.0 trillion. • NAFTA Population: The NAFTA region is home to 444.1

million people.

(33.3mn - Canada, 304.1 mn- US, and 106.7 mn - Mexico)

NAFTA SUPPLEMENTS

• North American Agreement on Environmental Cooperation (NAAEC)

• North American Agreement on Labour Cooperation (NAALC)

NAFTA Agreement

• Free Trade Commission• NAFTA Coordinators• NAFTA Working Groups and Committees • NAFTA Secretariat • Commission for Labor Cooperation • Commission for Environmental Cooperation

benefits

• Foreign Investments• Intellectual Property• Easier Access to Business Travelers• Access to Government Procurement

• Enlarges more efficient regional productive base

• US and Canadian firms tap labor-intensive low-wages

• Mexico receives FDI and employment

• Increases Mexican income to buy US/Canada goods

• Demand for US/Canada goods increases jobs

• Increases competitiveness of US/Canadian firms

Benefits-

canada

• Area- 3.6 million square miles

India’s exports to canada

SUCCESS STORIES-

• US- 1)Caterpillar Inc.

2)Mary Kay Inc.

• Mexico- 1)MABE

2)Grupo Modelo

• Canada-

1)Bombardier Transport Division

2)Unique Solutions

Conclusion-

NAFTA is one of the most successful treaties of the times in terms of growth in trade i.e. imports & exports, G.D.P e.t.c but on the other hand it is also responsible for causalities like loss of jobs, migration, rising level of inequality and many others.

Thus 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.