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The North American
The North American
Index
Index
Impact on: Employment Immigration Environment Trucking industry
Impact on: Employment Immigration Environment Trucking industry
Why Enter a Free Trade Agreement
Why Enter a Free Trade Agreement
Levels of Economic Integration
Levels of Economic Integration
What is NAFTA
What is NAFTA
Background of NAFTA
Background of NAFTA
Expectations and Goals
Expectations and Goals
Reaction After Implementation
Reaction After Implementation
Top U.S
Top U.S
NAFTA Pros
NAFTA Pros
NAFTA Cons
NAFTA Cons
The Mexican Peso Crisis
The Mexican Peso Crisis
What about Americas Farmers
What about Americas Farmers
Impact on: Employment
Impact on: Employment
Impact on: Immigration
Impact on: Immigration
Impact on: Environment
Impact on: Environment
Trucking Industry
Trucking Industry
Missouris Role
Missouris Role
Missouris Role (continued)
Missouris Role (continued)
Mid-Continent International Trade Corridor
Mid-Continent International Trade Corridor
Missouri and Employment
Missouri and Employment
The Missouri-Mexico Partnership
The Missouri-Mexico Partnership
NAFTAs Future
NAFTAs Future
Conclusion
Conclusion
2220 Holmes, Third Floor Kansas City, MO 64108 (816) 235-5840 (816)
2220 Holmes, Third Floor Kansas City, MO 64108 (816) 235-5840 (816)

: The North American. : haask. : The North American.ppt. zip-: 910 .

The North American

The North American.ppt
1 The North American

The North American

Free Trade Agreement

Katy Haas Coordinator, Alianzas www.alianzas.us

2 Index

Index

Why Enter a Free Trade Agreement? What is NAFTA? Background of NAFTA Reaction after Implementation The Mexican Peso Crisis What about Americas Farmers?

3 Impact on: Employment Immigration Environment Trucking industry

Impact on: Employment Immigration Environment Trucking industry

Missouris role NAFTAs future Conclusion

Mexico is the most important country to the United States in the 21st century

--President George W. Bush Sept. 5, 2001

4 Why Enter a Free Trade Agreement

Why Enter a Free Trade Agreement

5 Levels of Economic Integration

Levels of Economic Integration

*If the policies are not just harmonized by separate governments, but have a unified government with binding commitments on all members, then you reach political integration and have full economic integration.

6 What is NAFTA

What is NAFTA

Effective as of January 1, 1994

A trade agreement between CANADA, MEXICO, and the UNITED STATES which provides for the elimination of tariffs on North American goods shipped among the three countries.

7 Background of NAFTA

Background of NAFTA

An Introduction

Salinas

Clinton

Zedillo

Marcos

8 Expectations and Goals

Expectations and Goals

MEXICO: Lower inflation and foreign debt; create more well-paying jobs for Mexicans, thus producing less incentive for Mexicans to work illegally in the U.S.; Mexico would become a richer market for American exporters.

UNITED STATES: Would solidify an expanding trade relationship, which would spur job creation at home and help to continue the revolutionary shift throughout Latin America away from state controlled markets toward freer markets.

Would exert presidential authority, improve inter-American relations and advance the cause of global trade liberalization.

9 Reaction After Implementation

Reaction After Implementation

How the Countries Were Affected Immediately How They Are Affected Now

10 Top U.S

Top U.S

Exports

Imports

and

1. Motor Vehicles 2. Oil/Natural Gas 3. Motor Vehicle Parts 4. Semiconductors 5. Electronic Parts

1. Aircraft 2. Electronic Computing Equipment 3. Motor Vehicle Parts 4. Motor Vehicles 5. Semiconductors 6. Aircraft/Space/Missile Parts 7. Chemicals 8. Plastics 9. Airplane Engines/Parts 10. Refined Petroleum Products

11 NAFTA Pros

NAFTA Pros

Goods/Services at lower cost Most underdeveloped countries gain the most (i.e. standards of trade increased) Tariffs reduced Jobs created Mexicos economy is growing again

12 NAFTA Cons

NAFTA Cons

Fuel for peso crisis Benefits Mexico more than the U.S. U.S. deficit with trading partners Loss of low-wage American jobs to Mexico Environmental problems Traffic congestion and delays along the borders

13 The Mexican Peso Crisis

The Mexican Peso Crisis

Was NAFTA to Blame? Wages in United States and Mexico

14 What about Americas Farmers

What about Americas Farmers

BENEFITS: More export opportunities. Since NAFTA was approved in 1993, U.S. agricultural exports to Mexico have nearly doubled.

DISADVANTAGES: Face regulations that increase the costs of production while foreign competitors gain from cheap production and labor.

15 Impact on: Employment

Impact on: Employment

Was U.S. workers loss Mexican workers gain? Maquiladora - Primarily foreign-owned assembly plants Jobs lost to Mexico vs. Jobs supported by exports to Mexico and Canada

16 Impact on: Immigration

Impact on: Immigration

In the 1990s, U.S. population grew 13.2%, with 60% growth of Mexican immigrants. Among Latinos nationwide, 26% are between the ages of 25-40. Remittances from Mexicans working in the U.S.: $6.65 billion (for 2001 through 3rd quarter) Increase in Mexican migrants led to increase in Border Patrol staff

17 Impact on: Environment

Impact on: Environment

NAFTA Environmental Agreements:

North American Agreement on Environmental Cooperation (NAAEC) - commission to enforce environmental law. Border Environment Cooperation Commission and the North American Development Bank - commission to address pollution problems along the U.S.-Mexican border

18 Trucking Industry

Trucking Industry

The areas of concern include: vehicle safety, driver training, environmental issues and possible illegal drug trafficking.

A recent investigation determined that the average 18-wheeler in Mexico is 40% overloaded, carrying a gross vehicle weight of more than 120,000 pounds. If U.S. truckers operated at a similar overcapacity, interstate highways would have a life span of 14 years, as opposed to their 40-year design life.

19 Missouris Role

Missouris Role

20 Missouris Role (continued)

Missouris Role (continued)

Between 1994 and 1999, Missouri exports to NAFTA partners increased 63.4%.

Canada and Mexico are Missouris first- and second-largest export markets, respectively, accounting for 50.5% of Missouris total exports 1999.

21 Mid-Continent International Trade Corridor

Mid-Continent International Trade Corridor

1. A trade pattern 2. A system of connecting highways and rail routes 3. An opportunity to strengthen economic development in a region

22 Missouri and Employment

Missouri and Employment

23 The Missouri-Mexico Partnership

The Missouri-Mexico Partnership

The Missouri Department of Economic Development moved its hub to Monterrey Branch office in Guadalajara For the past 12 years, the Missouri Department of Agricultures headquarters has been in Guadalajara

24 NAFTAs Future

NAFTAs Future

Where is it going and what effects will it have?

U.S.-Central American Free Trade Agreement Free Trade Area of the Americas (FTAA)

25 Conclusion

Conclusion

26 2220 Holmes, Third Floor Kansas City, MO 64108 (816) 235-5840 (816)

2220 Holmes, Third Floor Kansas City, MO 64108 (816) 235-5840 (816)

235-1762 FAX www.alianzas.us

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