North American Free Trade Agreement Flashcards
1
Q
Objective
A
Gradually phase out tariffs between the member countries by 2010
2
Q
Tariff
A
A tax imposed on imported goods and services, used to restrict trade
3
Q
Member countries
A
USA, Canada + Mexico
4
Q
When
A
1994
5
Q
Main driver
A
The challenge presented by trade blocs from other parts of the world (Europe)
6
Q
Main aims
A
- Gradual elimination of all trade barriers
- Promotion of economic competition tween members
- Increased investment opportunities
- Generally improved cooperation between the 3 member states
7
Q
Positives
A
Manufacturing grew in USA = ↑ employment
Trade tween member countries x3 tween 1993 and 2007
Mexico received increased foreign investment, higher wages for Mexican workers + ↑ sales from agricultural sector
8
Q
Negatives
A
Some Canadian compans have closed because of compet from lower-cost US firms
Some US firms have moved to Mexico = American jobs lost
Mexico could be exploited because of its less stringent pollution laws
