INR 3933r Lecture Notes - North American Free Trade Agreement

84 views5 pages
19 Mar 2014
School
Course
Professor
NAFTA 03/17/2014
Origins
1985: Canada proposes FTA with US
1988: CUSTA
1 Jan. 1989: CUSTA enters into force
June 1990: US and Mexico agree to pursue a FTA
Canada expresses interest in joining negotiations
Why?
Don’t want to be disadvantaged, wanted to protect their own commercial interests
February 1991: Negotiations begin
December 1992: NAFTA signed (H.W Bush, Salinas—Mexico, Mulroney—Canada)
Bush lost, Clinton coming in
Clinton demands side agreements on labor and environment
November 1993: Ratified by Congress
No new negotiations, just side agreements to make sure environment isn’t degraded and there is fair labor
December 1993: Signed by Clinton
**Fast-Track Authority Congress gives to the President with the idea that if you bring us a bill we will
vote up or down on it. Only about trade bills & only for a limited duration. It is expired right now.
1 Jan 1994: Becomes law
Goals of Each Country
USA:
Capitalize on a growing export market to the south
Lock-in Mexico’s economic liberalization
Support Mexico’s democratization
Spur progress in GATT’s Uruguay round talks
Basically for the U.S, this was about politics
Mexico:
Unlock document

This preview shows pages 1-2 of the document.
Unlock all 5 pages and 3 million more documents.

Already have an account? Log in
Lock-in “apertura” (market opening)
Deflect protectionist pressures to reverse reforms
Secure access to its largest market (the U.S)
By joining NAFTA & getting access to American market, attract FDI inflows
Mexico was more economic
Canada
More to gain by joining the US-Mexico negotiations than remaining outside
Minimize the risk to Canada
Opportunity to extract new concessions from the U.S
Who Wins, Who Loses?
Most tariffs eliminated immediately
For sensitive goods: up to a 15 year phase-in period
Gradual elimination of barriers
Final tariffs eliminated 1 January 2008
Winners and Losers?
American corn winners
In Mexico? Warm weather fruits & vegetables w/ cheaper labor
In Canada & the U.S?
Unlock document

This preview shows pages 1-2 of the document.
Unlock all 5 pages and 3 million more documents.

Already have an account? Log in

Get access

Grade+
$10 USD/m
Billed $120 USD annually
Homework Help
Class Notes
Textbook Notes
40 Verified Answers
Study Guides
1 Booster Class
Class+
$8 USD/m
Billed $96 USD annually
Homework Help
Class Notes
Textbook Notes
30 Verified Answers
Study Guides
1 Booster Class