Presented by:Ankit Deora

Gargy SharmaRudrakshi Singh

Sakshi Somani ShivanshikaShekhawat

Supriya SomaniSurbhi Mathur

The North American Free Trade Agreement (NAFTA) is a comprehensive trade agreement that sets the rules of trade and investment between Canada, the United States, and Mexico

NAFTA has systematically eliminated most tariff and non-tariff barriers to free trade and investment between the three NAFTA countries.

Establishment: 1 January 1994 Members: Canada, Mexico & United States Official languages: English, French and Spanish Secretariats: Mexico city, Ottawa, Washington D.C. NAFTA supplements: NAAEC & NAALC

NAFTA is a formal agreement that establishes clear rules for commercial activity between Canada, the United States, and Mexico.

It is overseen by a number of institutions that ensure the proper interpretation and smooth implementation of the Agreement’s provisions. 

• Free Trade Commission• NAFTA Coordinators• NAFTA working groups & committees• NAFTA Secretariat• Commission for labor Cooperation• Commission for Environmental Cooperation

To eliminate trade barriers & facilitate the cross-border movements of goods and services between the parties

To promote conditions of fair competition

To substantially increase investment opportunities

To provide adequate and effective protection & enforcement of intellectual property rights in each territory

To create effective procedures for the implementation and application of this agreement ,for its joint administration & for resolution of disputes

To establish a framework for further trilateral, regional and multilateral co-operation to expand and enhance benefits of this agreement

The North American Agreement on Environmental Cooperation (NAAEC) is an environmental agreement between the United States of America, Canada and Mexico as a side-treaty of the North American Free Trade Agreement.

The agreement came into effect January 1, 1994. The agreement consists of a declaration of principles and

objectives concerning conservation and the protection of the environment as well as concrete measures to further cooperation on these matters between the three countries. 

The North American Agreement on Labor Cooperation (NAALC) was signed on September 14, 1993, by the Presidents of Mexico and the United States, and the Prime Minister of Canada, as one of the supplementary accords to the North America Free Trade Agreement (NAFTA).

It entered into force on January 1, 1994. The NAALC was the first international agreement on labor

to be linked to an international trade agreement. It provides a mechanism for member countries to ensure

the effective enforcement of existing and future domestic labor standards and laws without interfering in the sovereign functioning of the different national labor systems, an approach that made it novel and unique. 

NAFTA also seeks to eliminate non-tariff trade barriers and to protect the intellectual property right of the products.

Intellectual Property: NAFTA made some changes to the Copyright law of the

United States foreshadowing the Uruguay Round Agreements Act of 1994 by restoring copyright (within NAFTA) on certain motion pictures which had entered the public domain.

Environment: A side agreement was negotiated on the environment with

Canada and Mexico, the North American Agreement on Environmental Cooperation (NAAEC), which led to the creation of the Commission for Environmental Cooperation(CEC) in 1994. 

Transportation infrastructure:NAFTA established the CANAMEX Corridor for road transport between Canada and Mexico, also proposed for use by rail, pipeline, and fiber optic telecommunications infrastructure. This became a High Priority Corridor under the U.S. Intermodal Surface Transportation Efficiency Act of 1991.

Agriculture:three separate agreements were signed between each pair of parties. The Canada–U.S. agreement contains significant restrictions and tariff quotas on agricultural products (mainly sugar, dairy, and poultry products), whereas the Mexico–U.S. pact allows for a wider liberalization within a framework of phase-out periods (it was the first North–South FTA on agriculture to be signed).

Benefits: Benefits the importers by reduced or duty free goods.

trade and investment levels in North America have increased, bringing strong economic growth, job creation, and better prices and selection in Consmer goods.

There has been great increase in trade among the three countries and market access within each country also increased considerably.

improved economic stability in the U.S. marketplace a marketplace that is increasingly driven more by

supply and demand than by barriers to commerce

Limitations:

It has negative impacts on farmers in Mexico who saw food prices fall based on cheap imports from U.S. agro business

It has negative impacts on U.S. workers in manufacturing and assembly industries who lost jobs.

Critics also argue that NAFTA has contributed to the rising levels of inequality in both the U.S. and Mexico.

Some economists believe that NAFTA has not been enough (or worked fast enough) to produce an economic convergence, nor to substantially reduce poverty rates

MEMBER COUNTRY CONTRIBUTION / SUPPLY

UNITED STATES Technology, Services, and data processing, medical and space research and capital

CANADA Mineral, forest products, energy and technological expertise

MEXICO Labors, Petroleum and agricultural products

INDIA’S MAJOR EXPORTS ITEMS

INDIA’S MAJOR IMPORT ITEMS

PRECIOUS STONES

DIAMONDS & GOLD JEWELLARY

WOVEN APPAREL

KNIT APPAREL

FISH & SEAFOOD

IRON/STEEL PRODUCTS

ORGANIC CHEMICALS

SOPHISTICATED MACHINERY

ELECTRICAL MACHINERY

MEDICAL & SURGICAL EQUIPMENTSAIRCARFTS, SPACE CRAFTS

PLASTIC

WOOD PULP

METALS

INDIA’S MAJOR EXPORT ITEMS

INDIA’S MAJOR IMPORT ITEMS

READYMADE GARMENTS

GEMS,JEWELLARY & PRECIOUS STONESENGINEERING GOODS

IRON & STEEL ARTICLES

COFFEE

SPICES

ORGANIC CHEMICALS

NEWSPRINT – IN ROLLS OR SHEETSCOPPER ORES AND CONCENTRATESPEAS – DRIED AND SHELLED

IRON SCRAP,POTASH, COPPER

WOOD PULP

MINERALS

INDUSTRIAL CHEMICALS

INDIA’S MAJOR EXPORT ITEM

INDIA’S MAJOR IMPORT ITEM

TRANSPORT EQUIPMENT

DRUGS, PHARMACEUTICAL

READYMADE GARMENTS

INORGANIC/ORGANIC CHEMICALSMACHINERY & INSTRUMENTS

ELECTRONIC GOODS

DYES & INTERMEDIARIES

ARTICLES OF IRON OR STEEL

IRON & STEEL

PLASTIC & ARTICLES THEREOF

NUCLEAR REACTOR

MEDICAL OR SURGICAL EQUIPMENTSORES,SLAG AND ASH

ORGANIC CHEMICALS

The North American Free Trade Agreement (NAFTA) revolutionized trade and investment in North America, helping to unlock our region’s economic potential.

It has helped to stimulate economic growth and create higher-paying jobs across North America.

It has provided North American businesses with better access to materials, technologies, investment capital, and talent available across North America. 

It has proven that trade liberalization plays an important role in promoting transparency, economic growth, and legal certainty.