nafta shannon patterson march 25, 2010 period: 7

NAFTA

Shannon Patterson

March 25, 2010

Period: 7

ABOUT NAFTA• The acronym NAFTA means North American

Free Trade Agreement.• NAFTA covers Canada, the U.S. and New

Mexico.

The Background

• In 1988 Canada and the United States signed the “Free Trade Agreement”

• Soon after the United States entered into negotiations with the Mexican government for a similar treaty.

• Canada asked to join the negotiations in order to preserve its perceived gains under the 1988 deal.

When was NAFTA started?

• NAFTA was signed by president George H.W. Bush, Mexican president Salinas, Canadian Prime Minister Brian Mulroney in 1922.

• It was signed into a law by president Bill Clinton on December 8, 1993.

• It entered in force on January 4, 1994.

Why was NAFTA formed?

• To eliminate barriers to trade and facilitate the cross-border movement of goods.

• Promote conditions for fair competition.• Increase investment opportunities. • Provide protection and enforcement of intellectual property

rights.• Create procedures for the resolution of trade disputes.• Establish a framework for further trilateral , regional and

multilateral cooperation to expand NAFTA’s benefits.

How did NAFTA fulfill it’s purpose?

• Eliminated trade barriers.• Increased investment opportunities.• Established procedures for resolution of trade

disputes.

• Most importantly , it increased the competitiveness between New Mexico, U.S. and Canada.

How It Started

• Signed into law by Clinton.• House: 234 – 200, 11/17.• Ratified in 1993

Imports

• U.S. goods imports from NAFTA totaled 555.4 billion dollars.

• Five largest categories in 2008 were:–Mineral Fuel & Oil– Vehicles– Electrical Machinery–Machinery – & Special Others

History

• First trade agreement was with Israel, on September 1, 1985.

• Agreement had no expiration date.• 2nd trade agreement was made with Canada in

January 1988, but was super ceded in 1994.• Bill Clinton signed the NAFTA into effect on

September 4, 1993.

The End