F-Lec 4: G11 North America Free Trade and Global Corporations

North American Free Trade Agreement

Known as NAFTA, it’s a trilateral agreement between United States, Canada, and Mexico meant to eliminate trade barriers and facilitated cross-border movement.

January 1, 1994

The date NAFTA came into effect.

Reduced Trade Barriers

A NAFTA opportunity that makes trade less difficult through lower tariffs and simplified customs procedures.

Investment Opportunities

A NAFTA opportunity where these 3 countries experienced an increase in foreign direct investment.

Supply Chain Integration

A NAFTA opportunity that makes cross-border supply chains easier to establish and manage cross-border supply chains.

Increased Competition

A NAFTA challenge where there is a increased competition from foreign companies

Regulatory Compliance

A NAFTA challenge where there are problems with regulatory environments between these countries.

Labor Issues

A NAFTA challenge where labor standards and wages are questionable.

Environmental Concerns

A NAFTA challenge where it criticizes its impact on the environment.

Job Displacement

A NAFTA challenge where certain sectors may face layoffs.

United States-Mexico-Canada Agreement

A trilateral agreement between 3 countries that replaced NAFTA.

July 1, 2020

The year NAFTA was replaced by UMSCA.