NAFTANorth American Free Trade

Agreement

Canada, United States, and Mexico

This agreement lifted tariffs between the three member countries.

Pros vs Cons As in all things…NAFTA has its ups and its

downs. What problems would you predict with an

organization like NAFTA? What types of benefits would you predict

NAFTA would bring?

General “Pros” It opened trade between the three countries. Lowers the price of goods because importing

countries do not pay a tariff when they import. Example: The US would rather import oil from

Mexico than the Middle East because the Mexican oil is tax free The middle eastern oil would be the price of the oil PLUS tariff.

Trade has increased 200% since 1994. A higher demand for a product opens up more

jobs (more employees)

General “Cons” USA is building factories in other

countries because they can pay the workers less (American companies in Mexico). This leads to fewer jobs in America.

Mexican immigration has increased because…American jobs pay more.