N A F T A

The North American Free Trade Agreement

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N A F T A

• Free Trade Agreement between America, Canada, Mexico

• Came into effect on January 1 , 1994

• The world's largest free trade bloc

• laying the foundations for strong economic growth and rising prosperity for Canada, the United States, and Mexico.

N A F T A : What ?

• Free Trade Agreement between America, Canada, Mexico

• “Free Trade” means that countries may freely trade goods with each other without having to pay a tariff(tax) on those goods.

N A F T A : Why ?

The purpose of establishing the agreement is to :

• Allow free movement of goods and services among the countries

• Protect the property rights of people and business in each country

• Encourage the cooperation among countries

• Be able to resolve dispute

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N A F T A : Background

• In 1994, the North American Free Trade Agreement (NAFTA), a state-of-the-art market-opening agreement, came into force. Since then, NAFTA has systematically eliminated most tariff and non-tariff barriers to trade and investment between Canada, the United States, and Mexico. By establishing a strong and reliable framework for investment, NAFTA has also helped create the environment of confidence and stability required for long-term investment. NAFTA was preceded by the Canada-U.S. Free Trade Agreement.

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N A F T A : Background

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N A F T A , Contents

• NAFTA has played an important role in the overall development of the three nations

• Dispute resolution• Commitment to intellectual property &

environment legislation• Mutual entry into governmental bidding & the

financial and other service sector• But on the other hand it is also responsible for

causalities like loss of jobs , migration , rising level of inequality and many others

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N A F T A , Contents

• Rules of Origin

• Side Agreements

• Commitment to the Environment

• Commitment to Labor Cooperation

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N A F T A : Benefits ?

• Since NAFTA came into effect, trade and investment levels in North America have increased.

• bringing strong economic growth, job creation, and better prices and selection in consumer goods.

• North American businesses, consumers, families, workers, and farmers have all benefited.

N A F T A

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N A F T A , Fast facts

• Did you know?• Today, NAFTA partners

exchange nearly US$2.6 billion in merchandise each day—that’s about US$108 million per hour.

• In 1994, NAFTA was a state-of-the-art market-opening agreement that paved the way for the creation of high-paying export-related jobs and strong economic growth throughout North America.

Good to know

N A F T A : Future

• It is about integration of the North American marketplace

• It is about moving up the value-added chain

• It is about maintaining and increasing competitiveness and productivity

N A F T A : Conclusion

• NAFTA has played an important role in the overall development of the three nations

• Dispute resolution• Commitment to intellectual property &

environment legislation• Mutual entry into governmental bidding & the

financial and other service sector• But on the other hand it is also responsible for

causalities like loss of jobs , migration , rising level of inequality and many others