The document discusses the North American Free Trade Agreement (NAFTA). It provides background on NAFTA, including that it was signed in 1992 and entered into force in 1994. It created a trade bloc between Canada, Mexico, and the United States. The document then summarizes the impacts of NAFTA on each of the member countries. It states that NAFTA had a modest positive economic impact on Canada, Mexico, and the US as measured by GDP increases. It also increased trade, exports, and foreign investment between the member countries.

3. GROUP # 05
Group Members
Name Roll#
Zaryab Hussain 18
Ifrah Amjad 19
Ali Naqi 25
Amna Khizar 26
Ghulam Ishaq 37

4. NAFTA
North American Free Trade Agreement

6. VIDEO CLIP

7. Introduction
The North American Free Trade Agreement is an agreement
signed by Canada, Mexico, and the United States, creating a
trilateral trade bloc in North America. The agreement came
into force on January 1, 1994. It superseded the Canada–
United States Free Trade Agreement between the U.S. and
Canada.

8. Introduction
The North American Free Trade Agreement is an agreement
signed by Canada, Mexico, and the United States, creating a
trilateral trade bloc in North America. The agreement came
into force on January 1, 1994. It superseded the Canada–
United States Free Trade Agreement between the U.S. and
Canada.
NAFTA has two supplements:

9. Introduction
The North American Free Trade Agreement is an agreement
signed by Canada, Mexico, and the United States, creating a
trilateral trade bloc in North America. The agreement came
into force on January 1, 1994. It superseded the Canada–
United States Free Trade Agreement between the U.S. and
Canada.
NAFTA has two supplements:
 The North American Agreement on Environmental
Cooperation (NAAEC)

10. Introduction
The North American Free Trade Agreement is an agreement
signed by Canada, Mexico, and the United States, creating a
trilateral trade bloc in North America. The agreement came into
force on January 1, 1994. It superseded the Canada–United States
Free Trade Agreement between the U.S. and Canada.
NAFTA has two supplements:
 The North American Agreement on Environmental
Cooperation (NAAEC)
 The North American Agreement on Labor Cooperation (NAALC).

11. History

12. History
 The impetus for NAFTA began with President Ronald Reagan, who proposed a
North American common market in his campaign.

13. History
 The impetus for NAFTA began with President Ronald Reagan, who proposed a
North American common market in his campaign.
 In 1984, Congress passed the Trade and Tariff Act.

14. History
 The impetus for NAFTA began with President Ronald Reagan, who proposed a
North American common market in his campaign.
 In 1984, Congress passed the Trade and Tariff Act.
 Canadian Prime Minister Mulroney agreed with Reagan to begin negotiations
for the Canada-U.S. Free Trade Agreement. It was signed 1988.

15. History
 The impetus for NAFTA began with President Ronald Reagan, who proposed a
North American common market in his campaign.
 In 1984, Congress passed the Trade and Tariff Act.
 Canadian Prime Minister Mulroney agreed with Reagan to begin negotiations
for the Canada-U.S. Free Trade Agreement. It was signed 1988.
 Regan’s successor, President H.W. Bush, began negotiations with Mexican
President Salinas for a liberalized trade agreement between the two countries

16. History
 The impetus for NAFTA began with President Ronald Reagan, who proposed a
North American common market in his campaign.
 In 1984, Congress passed the Trade and Tariff Act.
 Canadian Prime Minister Mulroney agreed with Reagan to begin negotiations
for the Canada-U.S. Free Trade Agreement. It was signed 1988.
 Regan’s successor, President H.W. Bush, began negotiations with Mexican
President Salinas for a liberalized trade agreement between the two countries
 In 1991, Canada requested a trilateral agreement, which then led to NAFTA.

17. History
 The impetus for NAFTA began with President Ronald Reagan, who proposed a
North American common market in his campaign.
 In 1984, Congress passed the Trade and Tariff Act.
 Canadian Prime Minister Mulroney agreed with Reagan to begin negotiations
for the Canada-U.S. Free Trade Agreement. It was signed 1988.
 Regan’s successor, President H.W. Bush, began negotiations with Mexican
President Salinas for a liberalized trade agreement between the two countries
 In 1991, Canada requested a trilateral agreement, which then led to NAFTA.
 In 1992, NAFTA was signed by President George H.W. Bush, Mexican President
Salinas and Canadian Prime Minister Brian Mulroney.

18. History
 The impetus for NAFTA began with President Ronald Reagan, who proposed a
North American common market in his campaign.
 In 1984, Congress passed the Trade and Tariff Act.
 Canadian Prime Minister Mulroney agreed with Reagan to begin negotiations
for the Canada-U.S. Free Trade Agreement. It was signed 1988.
 Regan’s successor, President H.W. Bush, began negotiations with Mexican
President Salinas for a liberalized trade agreement between the two countries
 In 1991, Canada requested a trilateral agreement, which then led to NAFTA.
 In 1992, NAFTA was signed by President George H.W. Bush, Mexican President
Salinas and Canadian Prime Minister Brian Mulroney.
 It was ratified by the legislatures of the three countries 1993. The U.S. House
of Representatives approved it by 234 to 200 on November 17, 1993. The U.S.
Senate approved it by 60 to 38 on November 20.

19. History
 The impetus for NAFTA began with President Ronald Reagan, who proposed a
North American common market in his campaign.
 In 1984, Congress passed the Trade and Tariff Act.
 Canadian Prime Minister Mulroney agreed with Reagan to begin negotiations
for the Canada-U.S. Free Trade Agreement. It was signed 1988.
 Regan’s successor, President H.W. Bush, began negotiations with Mexican
President Salinas for a liberalized trade agreement between the two countries
 In 1991, Canada requested a trilateral agreement, which then led to NAFTA.
 In 1992, NAFTA was signed by President George H.W. Bush, Mexican President
Salinas and Canadian Prime Minister Brian Mulroney.
 It was ratified by the legislatures of the three countries 1993. The U.S. House
of Representatives approved it by 234 to 200 on November 17, 1993. The U.S.
Senate approved it by 60 to 38 on November 20.
 President Bill Clinton signed it into law December 8, 1993. It entered force
January 1, 1994. It was a priority of President Clinton's.

20. Purpose

21. Purpose
Article 102 of the NAFTA agreement outlines its purpose. There
are seven specific goals.
 Grant the signatories’ most favored nation status.

22. Purpose
Article 102 of the NAFTA agreement outlines its purpose. There
are seven specific goals.
 Grant the signatories’ most favored nation status.
 Eliminate barriers to trade and facilitate the cross-border
movement of goods and services.
 Promote conditions of fair competition.

23. Purpose
Article 102 of the NAFTA agreement outlines its purpose. There
are seven specific goals.
 Grant the signatories’ most favored nation status.
 Eliminate barriers to trade and facilitate the cross-border
movement of goods and services.
 Promote conditions of fair competition.
 Increase investment opportunities.
 Provide protection and enforcement of intellectual property
rights.

24. Purpose
Article 102 of the NAFTA agreement outlines its purpose. There
are seven specific goals.
 Grant the signatories’ most favored nation status.
 Eliminate barriers to trade and facilitate the cross-border
movement of goods and services.
 Promote conditions of 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 the trade agreement's
benefits.

25. PROS AND CONS
ALI NAQI

26. Pros (Advantages)

27. Pros (Advantages)
 The agreement eliminated tariffs. Trade increased to $1.14 trillion in 2015.
 Decreases reliance on oil from the middle east. Food can also be transported
for lower costs, reducing grocery bills. Costs are lowered for farm products,
too.

28. Pros (Advantages)
 The agreement eliminated tariffs. Trade increased to $1.14 trillion in 2015.
 Decreases reliance on oil from the middle east. Food can also be transported
for lower costs, reducing grocery bills. Costs are lowered for farm products,
too.
 It boosted U.S. Growth by as much as 0.5 percent a year. Three industries
benefited the most from increased exports: agriculture, automotive, and
services such as health care and financial services.
 Increased nearly 5 million new U.S. Jobs. Furthermore, manufacturers
created 800,000 jobs in the first four years of NAFTA.

29. Pros (Advantages)
 The agreement eliminated tariffs. Trade increased to $1.14 trillion in 2015.
 Decreases reliance on oil from the middle east. Food can also be transported
for lower costs, reducing grocery bills. Costs are lowered for farm products,
too.
 It boosted U.S. Growth by as much as 0.5 percent a year. Three industries
benefited the most from increased exports: agriculture, automotive, and
services such as health care and financial services.
 Increased nearly 5 million new U.S. Jobs. Furthermore, manufacturers
created 800,000 jobs in the first four years of NAFTA.
 U.S. Businesses invested $452 billion in Mexico and Canada. Companies in
those two countries invested $240.2 billion in the united states.
 Each nation's government contracts became available to suppliers in all three
member countries. That increased competition and lowered costs.

30. Cons (Disadvantages)

31. Cons (Disadvantages)
 it led to the loss of 500,000-750,000 U.S. jobs. Most were in the
manufacturing industry in California, New York, Michigan and
Texas. Companies in some industries moved to Mexico because labor was
cheap.
 job migration suppressed wages. Sixty-five percent of companies in the
affected industries threatened to move to Mexico.

32. Cons (Disadvantages)
 it led to the loss of 500,000-750,000 U.S. jobs. Most were in the
manufacturing industry in California, New York, Michigan and
Texas. Companies in some industries moved to Mexico because labor was
cheap.
 job migration suppressed wages. Sixty-five percent of companies in the
affected industries threatened to move to Mexico.
 Between 1993 and 1995, 50 percent of all companies in the industries that
were moving to Mexico used the threat of closing the factory. By 1999, that
rate had grown to 65 percent.
 NAFTA put Mexican farmers out of business. It allowed government-subsidized
U.S. farm products into Mexico. Local farmers could not compete with the
artificially low prices.

33. Cons (Disadvantages)
 It led to the loss of 500,000-750,000 U.S. jobs. Most were in the
manufacturing industry in California, New York, Michigan and
Texas. Companies in some industries moved to Mexico because labor was
cheap.
 job migration suppressed wages. Sixty-five percent of companies in the
affected industries threatened to move to Mexico.
 Between 1993 and 1995, 50 percent of all companies in the industries that
were moving to Mexico used the threat of closing the factory. By 1999, that
rate had grown to 65 percent.
 NAFTA put Mexican farmers out of business. It allowed government-subsidized
U.S. farm products into Mexico. Local farmers could not compete with the
artificially low prices.
 as Mexicans lost their farms, they went to work in sub-standard conditions in
the maquiladora program.
 U.S. companies degraded the Mexican environment to keep costs low.

34. Provision
 Intellectual property
 Environment
 Agriculture
 Transportation and infrastructure

35. IMPACT
AMNA KHIZAR

36. Impact
Canada
 Like Mexico and the U.S., Canada received a modest positive economic
benefit as measured by GDP.

37. Impact
Canada
 Like Mexico and the U.S., Canada received a modest positive economic
benefit as measured by GDP.
 One of NAFTA's biggest economic effects on U.S.-Canada trade has been to
boost bilateral agricultural flows in the year 2008 alone,
 Canada exports to the United States and Mexico were at $381.3 billion, and
imports from NAFTA were at $245.1 billion.

38. Impact
Canada
 Like Mexico and the U.S., Canada received a modest positive economic
benefit as measured by GDP.
 One of NAFTA's biggest economic effects on U.S.-Canada trade has been to
boost bilateral agricultural flows in the year 2008 alone,
 Canada exports to the United States and Mexico were at $381.3 billion, and
imports from NAFTA were at $245.1 billion.
 A 2007 study found that NAFTA has "almost zero welfare impact on member
and nonmember countries"
 A 2015 study found that Canada's welfare decreased by 0.06% as a result of
the NAFTA tariff reductions, and that Canada's intra-bloc trade increased by
11%.

39. Mexico
Income in the maquiladora sector has increased 15.5% since the
implementation of NAFTA in 1994.

40. Mexico
Income in the maquiladora sector has increased 15.5% since the
implementation of NAFTA in 1994.
 Mexico's agricultural exports increased 9.4 percent annually between
1994 and 2001, while imports increased by only 6.9 percent a year during
the same period.

41. Mexico
Income in the maquiladora sector has increased 15.5% since the
implementation of NAFTA in 1994.
 Mexico's agricultural exports increased 9.4 percent annually between 1994
and 2001, while imports increased by only 6.9 percent a year during the same
period.
 Mexico has gone from a small player in the pre-1994 U.S. export market to
the second largest importer of U.S. agricultural products in 2004,
 By the year 2003, 80% of the commerce in Mexico was executed only with the
U.S. The commercial sales surplus under NAFTA with the U.S., combined with
the deficit on the rest of the world, created a dependency in Mexico's
exports. These effects were evident in 2001–2003.

42. Mexico
Income in the maquiladora sector has increased 15.5% since the
implementation of NAFTA in 1994.
 Mexico's agricultural exports increased 9.4 percent annually between 1994
and 2001, while imports increased by only 6.9 percent a year during the same
period.
 Mexico has gone from a small player in the pre-1994 U.S. export market to
the second largest importer of U.S. agricultural products in 2004,
 By the year 2003, 80% of the commerce in Mexico was executed only with the
U.S. The commercial sales surplus under NAFTA with the U.S., combined with
the deficit on the rest of the world, created a dependency in Mexico's
exports. These effects were evident in 2001–2003.
 Mexico's welfare increased by 1.31% as a result of the NAFTA tariff reductions,
and that Mexico's intra-bloc trade increased by 118%. NAFTA has also been
credited with the rise of the Mexican middle class.
 The growth in the maquiladora industry and in the manufactory industry has
been of 4.7% by August, 2016.

43. United States
 In a 2012 survey of leading economists, 95% supported the notion that on average, U.S.
citizens benefited on NAFTA.
 US welfare increased by 0.08% as a result of the NAFTA tariff reductions, and that US
intra-bloc trade increased by 41%.

44. United States
 In a 2012 survey of leading economists, 95% supported the notion that on average, U.S.
citizens benefited on NAFTA.
 US welfare increased by 0.08% as a result of the NAFTA tariff reductions, and that US
intra-bloc trade increased by 41%.
 The U.S. Chamber of Commerce credits NAFTA with increasing U.S. trade in goods and
services with Canada and Mexico from $337 billion in 1993 to $1.2 trillion in 2011.
 University of California, San Diego, economics professor Gordon Hanson has said that
NAFTA helped the U.S. compete against China and therefore saved U.S. jobs.

45. Trade balances
 The U.S. had a trade surplus with NAFTA countries of $28.3 billion for services in 2009
and a trade deficit of $94.6 billion (36.4% annual increase) for goods in 2010. This trade
deficit accounted for 26.8 percent of all U.S. goods trade deficit.
 NAFTA has increased U.S. agricultural exports to Mexico and Canada even though most
of this increase occurred a decade after its ratification.

46. Trade balances
 The U.S. had a trade surplus with NAFTA countries of $28.3 billion for services in 2009
and a trade deficit of $94.6 billion (36.4% annual increase) for goods in 2010. This trade
deficit accounted for 26.8 percent of all U.S. goods trade deficit.
 NAFTA has increased U.S. agricultural exports to Mexico and Canada even though most
of this increase occurred a decade after its ratification.
Investment
 The U.S. foreign direct investment (FDI) in NAFTA countries (stock) was $327.5 billion in
2009 up 8.8% from 2008.
 The foreign direct investment of Canada and Mexico in the United States (stock) was
$237.2 billion in 2009, up 16.5% from 2008.

47. Jobs
 trade supports over 140,000 small- and medium-sized businesses in the US.
 Economic Policy Institute (EPI) economist Robert Scott estimates some 682,900 U.S.
jobs have been "lost or displaced" as a result of the trade agreement.
 87% of the losses in manufacturing jobs.

48. ENVIRONMENT AND POLICIES
OF DONALD TRUMP
ZARYAB HUSSAIN

49. Environment
 NAFTA reduced pollution emitted by the US manufacturing sector.
 "On average, nearly two-thirds of the reductions in PM10 and
SO2 emissions from the U.S. manufacturing sector between 1994 and 1998
can be attributed to trade liberalization following NAFTA.

50. Environment
 NAFTA reduced pollution emitted by the US manufacturing sector.
 "On average, nearly two-thirds of the reductions in PM10 and
SO2 emissions from the U.S. manufacturing sector between 1994 and 1998
can be attributed to trade liberalization following NAFTA.
 NAFTA contributed to large-scale, export-oriented farming, which led to
the increased use of fossil fuels and pesticides.
 Prevented Canada from effectively regulating its tar sands industry, and
created new legal avenues for transnational corporations to fight
environmental legislation.

51. Policy of the Trump administration

52. Policy of the Trump administration
Renegotiation
 U.S. President Donald Trump announced his intention to begin renegotiating the terms of
NAFTA, seeking to resolve issues with trade outlined during his campaign for the
presidency.

53. Policy of the Trump administration
Renegotiation
 U.S. President Donald Trump announced his intention to begin renegotiating the terms of
NAFTA, seeking to resolve issues with trade outlined during his campaign for the
presidency.
 The leaders of Canada and Mexico have indicated their willingness to work with the
Trump administration.
 Trump has threatened to withdraw from it if negotiations fail.

54. Policy of the Trump administration
Renegotiation
 U.S. President Donald Trump announced his intention to begin renegotiating the terms of
NAFTA, seeking to resolve issues with trade outlined during his campaign for the
presidency.
 The leaders of Canada and Mexico have indicated their willingness to work with the
Trump administration.
 Trump has threatened to withdraw from it if negotiations fail.
 In July 2017, the Trump administration provided a detailed list of changes that it would
like to see to NAFTA. The top priority for the administration is the reduction in the
United States' trade deficit.
 The Trump administration's list "is very consistent with the president’s stance on liking
trade barriers, liking protectionism. This makes NAFTA in many respects less of a free-
trade agreement.

55. Impact of withdrawing from NAFTA
 Trump proposed would have a range of unintended consequences for growth,
and increased prices for gasoline, cars, fruits, and vegetables. The worst
affected sectors would be textiles, agriculture and automobiles.
 Drezner argues that NAFTA made it easier for Mexico to transform to a real
democracy and become a country that views itself as North American.

56. Impact of withdrawing from NAFTA
 Trump proposed would have a range of unintended consequences for growth,
and increased prices for gasoline, cars, fruits, and vegetables. The worst
affected sectors would be textiles, agriculture and automobiles.
 Drezner argues that NAFTA made it easier for Mexico to transform to a real
democracy and become a country that views itself as North American.
 US-Mexico relations would worsen, with adverse implications for cooperation
on border security, counterterrorism, drug-war cooperation, deportations and
managing Central American migration.
 NAFTA that would reestablish trade barriers is unlikely to help workers who
lost their jobs — regardless of the cause — take advantage of new
employment opportunities.

57. DISPUTES AND CONTROVERSIES
GHULAM ISHAQ

58. Disputes And Controversies
Legal disputes
 In 1996, the gasoline additive MMT was brought into Canada by Ethyl
Corporation, an American company. At the time, the Canadian federal
government banned the importation of the additive.

59. Disputes And Controversies
Legal disputes
 In 1996, the gasoline additive MMT was brought into Canada by Ethyl
Corporation, an American company. At the time, the Canadian federal
government banned the importation of the additive.
 The American company brought a claim under NAFTA Chapter 11 seeking
US$201 million from the Canadian government and the Canadian provinces
under the Agreement on Internal Trade ("AIT").

60. Disputes And Controversies
Legal disputes
 In 1996, the gasoline additive MMT was brought into Canada by Ethyl
Corporation, an American company. At the time, the Canadian federal
government banned the importation of the additive.
 The American company brought a claim under NAFTA Chapter 11 seeking
US$201 million from the Canadian government and the Canadian provinces
under the Agreement on Internal Trade ("AIT").
 Canadian federal government repealed the ban and settled with the American
company for US$13 million.

61. Change in income trust taxation not expropriation
 On October 30, 2007, American citizens Marvin and Elaine Gottlieb filed a
Notice of Intent to Submit a Claim to Arbitration under NAFTA, claiming
thousands of U.S. investors lost a total of $5 billion in the fall-out from
the Conservative Government's decision the previous year to change the tax
rate on income trusts in the energy sector.

62. Change in income trust taxation not expropriation
 On October 30, 2007, American citizens Marvin and Elaine Gottlieb filed a
Notice of Intent to Submit a Claim to Arbitration under NAFTA, claiming
thousands of U.S. investors lost a total of $5 billion in the fall-out from
the Conservative Government's decision the previous year to change the tax
rate on income trusts in the energy sector.
 On April 29, 2009, a determination was made that this change in tax law was
not expropriation.

63. Zapatista Uprising in response to NAFTA in Chiapas
 The preparations for NAFTA included cancellation of Article 27 of Mexico's
constitution, the cornerstone of Emiliano Zapata's revolution of 1910–1919.

64. Zapatista Uprising in response to NAFTA in Chiapas
 The preparations for NAFTA included cancellation of Article 27 of Mexico's
constitution, the cornerstone of Emiliano Zapata's revolution of 1910–1919.
 Under the historic Article 27, Indian communal landholdings were protected
from sale or privatization.

65. Zapatista Uprising in response to NAFTA in Chiapas
 The preparations for NAFTA included cancellation of Article 27 of Mexico's
constitution, the cornerstone of Emiliano Zapata's revolution of 1910–1919.
 Under the historic Article 27, Indian communal landholdings were protected
from sale or privatization.
 However, this barrier to investment was incompatible with NAFTA

66. Zapatista Uprising in response to NAFTA in Chiapas
 The preparations for NAFTA included cancellation of Article 27 of Mexico's
constitution, the cornerstone of Emiliano Zapata's revolution of 1910–1919.
 Under the historic Article 27, Indian communal landholdings were protected
from sale or privatization.
 However, this barrier to investment was incompatible with NAFTA
 Indian farmers feared the loss of their remaining lands, and also feared cheap
imports from the US. Thus, the Zapatistas labelled NAFTA as a "death
sentence" to Indian communities all over Mexico. Then EZLN declared war on
the Mexican state on January 1, 1994, the day NAFTA came into force.

68. Any Question