North American Free Trade Agreement

1
North American Free Trade Agreement

• Trouble in Juarez
• BY
• Chris Maleki
• Jason Swope

2
Summary

• Background Information
• Disadvantages of NAFTA
• Advantages of NAFTA
• Trouble in Juarez
• Conclusion

3
Background

• Implementation of the North American Free Trade
  Agreement (NAFTA) began on January 1, 1994.
• While some tariffs were eliminated immediately,
  others would take anywhere from 5-15 years to be
  eliminated.

4
Background

• This agreement removed most barriers for
  investment among the United States, Canada, and
  Mexico.
• In addition, under NAFTA, all non-tariff barriers
  to agricultural trade between the United States
  and Mexico were eliminated.

5
Background

• The Implementation process of NAFTAs no barriers
  was completed in 2008.
• In 2008, the last of NAFTAs transitional
  restrictions governing U.S., Mexico and Canadas
  agricultural trade were removed This concluded a
  14-year project in which the member countries
  systematically dismantled numerous barriers to
  regional agricultural trade.

6
Background

• NAFTA created the world's largest free trade
  area, which now links 444 million people and
  producing 17 trillion worth of goods and
  services.
• The North American Free Trade Agreement has two
  Supplements, the North American Agreement on
  Environmental Cooperation and the North American
  Agreement on Labor Cooperation

7
Disadvantages

• Some economists argue that NAFTA has been
  beneficial to business owners and elites in all
  three countries, but has had negative impacts on
  farmers in Mexico who saw food prices fall based
  on cheap imports from U.S. agribusiness and
  negative impacts on U.S. workers in manufacturing
  and assembly industries who lost jobs.

8
Disadvantages

• Other economists believe that NAFTA has not been
  sufficient (or worked fast enough) to produce
  economic convergence, nor to substantially reduce
  poverty rates.
• In addition, some have suggested that in order to
  fully benefit from the agreement, Mexico must
  invest more in education and promote innovation
  in infrastructure and agriculture.

9
Disadvantages

• Since labor is cheaper in Mexico, many U.S.
  manufacturing industries moved part of their
  production from high-cost states to Mexico.
• Between 1994 and 2002, the U.S. lost
  approximately 1.7 million jobs while gaining only
  794,000 for a net loss of 879,000 jobs.
• These industries included, but were not limited
  to Agri-businesses.

10
Disadvantages

• NAFTA expanded the maquiladora program, in which
  U.S.-owned companies employed Mexican workers
  near the border to cheaply assemble products for
  export to the U.S.
• According to The Continental Social Alliance,
  these workers have no labor rights or health
  protections, workdays can stretch 12 hours or
  more, and if you are a woman, you could be forced
  to take a pregnancy test when applying for a job."

11
Advantages

• In 2007, Canada and Mexico were, respectively,
  the first and second largest export markets for
  U.S. agricultural products.
• Exports to the two markets combined were greater
  than exports to the next six largest markets
  combined.

12
Advantages

• Agricultural trade increased in both
  directions(U.S.-Mexico) under NAFTA from 7.3
  billion in 1994 to 20.1 billion in 2006.
• This was an approximately 300 increase in
  economic activity Or 25 year over year growth
  (12 years).

13
Advantages

• From 1992-2007, the value of U.S. agricultural
  exports worldwide climbed 65.
• Over that same period, U.S. farm and food exports
  to Mexico and Canada grew by 156.

14
Advantages

• NAFTA expanded the maquiladora program, which
  enabled U.S.-owned companies to employ Mexican
  workers near the border.
• This allowed for more efficient assembly of
  manufactured goods and in turn, increased exports
  to the U.S.
• This increased Mexicos labor force by 30

15
Perspective
16
Juarez

• According to Foreign Policy in Focus Juarez is
  The Murder Capital of the World.
• Jaurez sits adjacent to El Paso, Texas.
• NAFTA is believed to blamed by some for the
  violence.

17
Jaurez

• http//www.youtube.com/watch?vC9MXJRnqG1Afeature
  related
• http//www.youtube.com/watch?vFMdRfJTQvAkfeature
  related

18
Conclusion

• NAFTA is complicated and often intensely debated
  by many.
• Although there have been some negative social
  consequences associated with NAFTA. Overall it
  has increased economic activity for all trading
  partners.