NAFTA Flashcards
(10 cards)
What is NAFTA?
NAFTA (North American Free Trade Agreement) is a free trade agreement signed on December 17, 1992, by the United States, Canada, and Mexico, and came into effect on January 1, 1994.
What is the main goal of NAFTA?
The main goal of NAFTA is to eliminate trade barriers, increase investment, protect intellectual property, create new jobs, and enhance global competitiveness in North America.
What are the key components of NAFTA?
Key components of NAFTA include the gradual elimination of tariffs and non-tariff barriers, providing free market access among member countries, and regulating investment protections for foreign investors.
What agreements are associated with labor and environmental protection in NAFTA?
NAFTA is accompanied by the North American Agreement on Labor Cooperation (NAALC) and the North American Agreement on Environmental Cooperation (NAAEC).
What are the main benefits of NAFTA?
Main benefits of NAFTA include significant trade increases among member countries, improved production efficiency through cross-border supply chains, and lower consumer prices.
What criticisms have been directed at NAFTA?
Criticisms of NAFTA include its impact on jobs in the United States, as many manufacturing jobs moved to Mexico, leading to economic inequality and environmental concerns due to lax enforcement of environmental regulations.
What replaced NAFTA on July 1, 2020?
NAFTA was replaced by the USMCA (United States-Mexico-Canada Agreement) on July 1, 2020.
Who were the leaders involved in the creation of NAFTA?
The leaders involved in NAFTA were President George H.W. Bush of the United States, Prime Minister Brian Mulroney of Canada, and President Carlos Salinas de Gortari of Mexico.
What changes did USMCA introduce compared to NAFTA?
USMCA updated several provisions of NAFTA, including requiring more vehicle components to be produced in North America, raising labor wage standards in Mexico, and improving U.S. dairy product access to the Canadian market.
What overall impact did NAFTA have on North American trade?
Overall, NAFTA brought significant changes to trade in North America, despite facing challenges and criticisms.
