NAFTA

when did it come into effect

1994

objective

eliminating most restrictions between canada us and mexico

concerns

countries outside of blocs would be disadvantaged

why made

completion of eu and eea

what did the 1994 agreement consist of x2

tarrifs in NAmerica goods phased out within 10 years

protection to sensitive industries

us concerns over mexico

annual review of dumping cheap products into other countries

3 country comission

differences with eu x3

does not seek political union

does not allow free labour flows

does not establish common currency

impact on us- supporters

specialisation- inc what best at

impact on us- protesters

who are they

wage reductions due to cheap labour in mexico + env legislations

unions and environmentalists

neg impacts

higher paid → lower paid jobs

trade deficit (only 16% due to NAFTA)

limited access to ‘unsafe mexican trucks’