NAFTA

NAFTAPREPARED

BY:

KHAN

TEHSEEN

AFAK

INTRODUCTION

BACKGROUND:

The North American Free Trade Agreement (NAFTA) was implemented on January 1st, 1994 and is an agreement to remove both tariffs and investment barriers between the United States, Canada, and Mexico, as well as encourage further trade.

BENEFITS: NAFTA has increases trade between the three nations. According to the Office of the US Trade Representative,

between 1993 and 2009, US goods and services trade with NAFTA tripled from $297 billion to $1.6 trillion.

In addition the NAFTA partners were the top two purchasers of US exports in 2010, with Canada purchasing $248.2 billion and Mexico $163.3 billion.

IMPACT OF NAFTA

NAFTA'S ECONOMIC IMPACT: NAFTA, has helped boost intraregional trade between

Canada, Mexico, and the United States, but has fallen short of generating the jobs and the deeper regional economic integration its advocates promised decades ago.

IMPACT ON MEXICO: Mexico has enjoyed an intangible benefit of NAFTA. The

country has adopted orthodox economic management practices and is no longer prone to crises.

IMPACT ON CANADA: Canadian manufacturing employment held steady, though the

"productivity gap" between the Canadian and U.S. economies wasn't narrowed: Canada's labor productivity stood at 72 percent of U.S. levels in 2012 despite Canada's highly educated work force.

SUCCESS OF NAFTA

CANADA:1. BOMBARDIER TRANSPORT DIVISION:

2. UNIQUE SOLUTIONS:

UNITED STATES:1. CATERPILLAR:

2 MARY KAY :

MEXICO:1. MABE:

2. GRUPO MODELO:

ACHIEVEMENTS AND CHALLENGES

NAFTA promote trade and investment among the partner countries but not everything that exuberant politicians promised.

High-profile failures involving softwood lumber, trucking, and sugar mar an otherwise solid record on regional trade and investment.

In January 1994, NAFTA represented a $6 trillion economy with a population of 360 million. Ten years later, the NAFTA area grew to a $12.5 trillion economy with a population of 430 million.

North American firms have restructured to take advantage of

economies of scale in production and intra industry specialization.