CH 3 NAFTA

Question 1

what does NAFTA stand for?

Answer 1

The North American Free Trade Agreement

Question 2

What factors have contributed to the slow pace of global progress toward trade liberalisation and economic cooperation?

Answer 2

WTO’s policy decision-making only by consensus, the long duration of its rounds, and its efforts to ensure that countries individual sovereignty will not be overridden.

Question 3

What are the five levels of integration that have emerged for bilateral and regional trade agreements?

Answer 3

Preferential tarriff’s, free trade area, customs union, common market, economic and monetary union

Question 4

What are preferential tarriff’s?

Answer 4

The countries involved offer each other lower tarriff’s than are applicable to countries that are not parties to the agreement.

Question 5

What is free trade area?

Answer 5

Two or more countries agree to remove substantially all tariff and non-tariff barriers between them while maintaining their own external tariff schedules against other countries.

Question 6

What is custom union?

Answer 6

The countries involved eliminate trade barriers among themselves and impose a common external tariff.

Question 7

What is common market?

Answer 7

The countries agree to common policies for the internal operation and integration of the combined market that has been created.

Question 8

What is economic and monetary union?

Answer 8

the countries agree to create a single central bank, coordinate monetary policy and adopt a common currency, as well as create a common.

Question 9

What is Article xxvi (GATT)?

Answer 9

allows customs unions and free trade areas.

Question 10

What is common market?

Answer 10

The countries agree to common policies for the internal operation and integration of the combined market that has been created.

Question 11

what was the new NAFTA agreement called?

Answer 11

CUSMA - Canada United States Mexico Agreement

Question 12

What are the rules relating to tariffs?

Answer 12

each NAFTA country retains its own external tariffs that are applied to goods from non-member countries but levies a lower tariff or no tariff on goods “originating” from other NAFTA members

Question 13

What happened over time to tariffs for the NAFTA members?

Answer 13

Canada - US eliminated virtually all tariffs on originating goods with the exception of tariffs that remain on some agricultural products. Mexico has loosened its strict import rules.

Question 14

Did the tariff rule change from NAFTA to CUSMA?

Answer 14

not changed

Question 15

what is area treatment?

Answer 15

treatment whereby beneficial NAFTA tariffs are available to goods deemed to have originated in the NAFTA area.

Question 16

What is the qualification to be classified as an originating good?

Answer 16

Meet one of the following conditions;
1. The good is wholly produced in North America
2. The good is substantially transformed within a NAFTA country with the result that the tariff classification has changed.
3, Each of the non-orginating goods used in the production of the good has undergone a change in tariff classification as a result of production in north america
4. The finished good has not achieved a tariff classification change but the good contains sufficient regional-value content/

Question 17

What is the Harmonised Commodity Description and Coding System (HS)? And what is it used for?

Answer 17

it is the basis for tariff classifications under NAFTA and has been adopted by most of the worlds major trading countries. It was developed by the Worlds Customs Organisation.

Question 18

What is a certificate of origin? And what does it contain?

Answer 18

a signed statement prepared by the exporter, providing border services and government officials with information as to the place of origin, assembly, or manufacture of goods being exported, and usually also providing the HS classification number.

Question 19

Talk about CUSMA and Agriculture

Answer 19

The agriculture chapter includes new requirements on science-based regulations and risk analysis and creates a new mechanism to resolve issues cooperatively among the 3 nations.

Question 20

What were Canada’s goals in the NAFTA negotiations? (Energy)

Answer 20

maintain and enhance its US-Energy-export position
avoid a separate US-Mexico trade agreement that could relegate Canada to a spoke relationship
coordinate Canadian and US regulatory policies on Canadian natural gas exports

Question 21

Talk about CUSMA and Intellectual Property

Answer 21

Copyright term has increased from 8 to 10 years
and life of the author plus 50 to life of the author plus 70
3 nations must pass legislation for seizure of suspected counterfeit goods.

Question 22

What is included in the new labour agreement in CUSMA

Answer 22

prohibits import of goods produced by forced labour addresses violence against workers exercising their labour rights
ensures that migrant workers are protected under labour laws
implements policies that protect against employment discrimination on the basis of gender

Question 23

What is nullification or impairment?

Answer 23

a complaint referring to the nullification or impairment of benefits a party could reasonably expect under a trade agreement; to establish this complaint under NAFTA, it is necessary to show what a measure otherwise consistent with NAFTA has resulted un the impairment of an expected NAFTA benefit and that this outcome was not anticipated at the time the agreement was negotiated.

Question 24

What is the Free Trade Commission?

Answer 24

provided for under NAFTA, it is composed of an equal number of Cabinet level representatives from each country and is the body charged with the responsibility to consult when there is a dispute between parties to NAFTA.

Question 25

Is the decision from the panel from CHapter 20 binding?

Answer 25

no contains recommendations

Question 26

Are the decision from the panel from Chapter 19 binding?

Answer 26

Yes

Question 27

What is the only exception to Chapter 19 panel?

Answer 27

Extraordinary Challenge Committee (EEC)

Question 28

What are the circumstances to appeal to the EEC?

Answer 28

a member of the panel was guilty of gross misconduct, bias, or a serious conflict of interest, or otherwise materially violated the rules of conduct; or
the pane seriously departed from the fundamental rule of the procedure
Panel exceeded its power/authority/jurisdiction

Question 29

What are bilateral investment treaties?

Answer 29

an agreement between two countries establishing the terms and conditions for private investments by nationals and companies of one country in the other country