NAFTA Flashcards
What is NAFTA in full?
North American Free Trade Agreement
Who was it signed by and when?
USA, Canada and Mexico in 1994
What are NAFTAs main aims?
promoting of economic competition between members, elimination of trade barriers, increased investment opportunities
When did Mexico get into debt and how did they hope that NAFTA would help?
1970s/80s, hoped economic growth and higher employment would result from joining NAFTA
What did the trade between member countries do, from what to what?
it tripled from $306billion in 1993 to $930billion in 2007
What grew in the USA which increased employment
manufacturing
What did Mexico receive an increase in, and what did this mean for Mexican workers and the agricultural sector?
received increased FDI, workers got higher wages and there were increased sales for the agricultural sector
Why did some Canadian companies have to close?
competition from lower cost US firms
What caused a loss in American jobs?
US firms moved to Mexico
What affected the peasant agricultural economy in Mexico?
food surpluses from USA and Canada which were dumped in Mexico
Why could Mexico be exploited?
less stringent pollution laws
How many jobs were created in America because of NAFTA?
1.7million
Which tariffs did NAFTA get rid of?
12% tariff of stuff shipped into Mexico and 200% corn grown in US tariff
What is Whirlpool in Evansville, Indiana?
a refrigerator production company
How was Whirlpool affected by NAFTA?
11,000 factory workers lost jobs because the plant closed as they transferred production to Mexico
