Prepared by : Wael Mohammed YehiaPrepared by : Wael Mohammed Yehia

Ahmed Emissiry Ahmed Emissiry

Islam ElmaghrabyIslam Elmaghraby Mohamed Mansi Mohamed Mansi Ingy Ali Ibrahim Ingy Ali Ibrahim

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Historical Background Objectives Impacts Challenges Achievements

Tariff elimination for products Before NAFTA, Mexican tariffs on U.S.-made

products were on average 250 % higher than U.S. duties on Mexican products.

NAFTA Eliminate 50% of these tariffs immediately and the remaining tariffs eliminated gradually over 15 years.

The areas specifically covered by NAFTA are construction, engineering, accounting, advertising, consulting/management, architecture, health-care management, commercial education and tourism

Elimination of nontariff barriers Mexico remove most of the import licenses,

which had acted as quotas to limit imports from U.S. and other countries.

Also by 2008. Mexico open the border for U.S. truckers and minimize border processing requirements.

Eliminate Other Mexican barriers, such as Local content requirements which is permission to sell a product in condition it has % cooperation of local parts or labor in it.

Protect the environment and labor by Side Supplemental agreements

North American Agreement on Environmental Cooperation (NAAEC)- To ensure that the Mexico's increasing in industrialization not Increase the pollution.

North American Agreement on Labor Cooperation (NAALC)- To protect Mexico's low wages from shifting the U.S. companies’ Production to Mexico

But these agreements Didn’t enforced.

Agricultural Trade “More free trade in agriculture”

NAFTA has enforced a greater integration of the North American agricultural sector for efficient use of resources among them and more productivity as a result.

After NAFTA, U.S. agricultural exports to North America have grown rapidly to reach $30 billion per year by 2005--up from $11.6 billion in 1996 .

Automotive Industry “Tariff reduction for motor vehicles and auto parts”

Before NAFTA, U.S. motor vehicle exports to Mexico faced local content requirements and also tariffs of 20 % Imposed on the Imports from the U.S.

After NAFTA, Eliminate these trade barriers and lead that In 1996, the U.S. exported 51,000 new cars and 31,000 new trucks to Mexico alone for a value of $1.2 billion.

Textiles and Apparel “Reduced textile and apparel barriers”

NAFTA has enabled U.S. producers to optimize production and manufacturing investment in North America as a result in a shift of production from the Far East to North America and strengthening the industry's worldwide position.

After NAFTA, The trade for the three NAFTA partners has nearly doubled from $6.4 billion in 1993 to $12.4 billion in 1996.

Liberalized regulation of transportations NAFTA Reduce the restrictions on international travel so

the Long distance truckers from each country are permitted to drive across the borders.

The first Mexican drivers were allowed to operate in the U.S. in October 2011.

NAFTA established the CANAMEX Corridor for road transport between Canada and Mexico.

NAFTA also proposed for use by rail, pipeline, and fiber optic telecommunications.

Increased protection of intellectual property rights

NAFTA stated that, Mexico had to provide a very high level of protection for intellectual property rights. This is especially helpful in fields such as computer software and chemical production. Mexican firms will no longer be able to steal intellectual property from companies and create a "Mexican" version of a product.

US-Mexico relations have expanded into a close political, social, and cultural partnership.

The increased movement of goods, services, and individuals has created growing linkages

The exchange of ideas and methods in addressing common challenges.

NAFTA has fundamentally altered the North American economic space, and increased the global competitiveness of all three parties.

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Real GDP Growth – 1994 to 2005:◦ U.S.: 48%◦ Canada: 49%◦ Mexico: 40%

$2.2 billion in trilateral trade daily Trade among the nations increased 173%

◦ From $297 billion to $810 billion

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Exports to NAFTA partners grew 113% NAFTA partners account for 55% of

increase in agricultural exports Industrial production rose 49%

◦ 28% in prior period 36.2% increase in business sector

productivity 20.1% growth in jobs Average unemployment rate dropped from

7.1% to 5.1%

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More than half of exports go to the U.S. Exports now account for over 40% of GDP Exports to U.S. increased by 250% 86.6% of total exports go to NAFTA partners 17.5% increase in jobs from pre-NAFTA

levels

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37% difference between wages in export-related sectors and others

Agricultural exports to U.S. increased by $5.7 billion

Exports to Canada grew almost 227% Two-way trade with the U.S. has grown

more than 125% Productivity increased 55%

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Established in 1992, implemented in 1994, NAFTA created a tri-national (Canada, Mexico, and the United States) market area◦ more than 360 million people◦ combined annual purchasing power of about

$6.5 trillion. Dismantles trade barriers for industrial goods,

and has agreements on services, investments, intellectual property rights, and agriculture.

Side agreements on labor adjustments, environmental protection, import surges, child labor, minimum wages, productivity, and health and safety standards.

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Early attempts were the Latin American Free Trade Association (LAFTA) and the Central American Common Market (CACM). Both failed economically and politically.

LAFTA was superceded by the Latin American Integration Association (LAIA), whose goal was to increase bilateral trade among member nations.

MERCOSUR was established in 1995 as an organization to promote trade in South America.

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Free trade blocs in the Americas

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