{"id":178,"date":"2014-09-05T03:35:56","date_gmt":"2014-09-05T03:35:56","guid":{"rendered":"https:\/\/courses.candelalearning.com\/internationalbusiness1xmaster\/?post_type=chapter&#038;p=178"},"modified":"2015-02-17T20:14:29","modified_gmt":"2015-02-17T20:14:29","slug":"reading-nafta","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/suny-internationalbusiness\/chapter\/reading-nafta\/","title":{"raw":"Reading: NAFTA","rendered":"Reading: NAFTA"},"content":{"raw":"<div>\r\n<div>\r\n<h2>NAFTA is an agreement signed by Canada, Mexico, and the United States, creating a trilateral trade bloc in North America.<\/h2>\r\n<\/div>\r\n<div>\r\n<div class=\"bcc-box bcc-success\">\r\n<h3>KEY\u00a0Points<\/h3>\r\n<section>\r\n<div data-type=\"note\">\r\n<ul>\r\n\t<li>The North American Free Trade Agreement (NAFTA) is an agreement signed by the governments of Canada, Mexico, and the United States, creating a trilateral trade\u00a0bloc\u00a0in North America.<\/li>\r\n\t<li>NAFTA came into effect on January 1, 1994 and superseded the Canada \u2013 United States\u00a0Free Trade\u00a0Agreement.<\/li>\r\n\t<li>Within 10 years of the implementation of NAFTA, all U.S.-Mexico tariffs are to be eliminated except for some U.S. agricultural\u00a0exports\u00a0to Mexico which will be phased out within 15 years.<\/li>\r\n\t<li>Most U.S. - Canada trade was duty free before NAFTA.<\/li>\r\n\t<li>NAFTA also seeks to eliminate non-tariff trade barriers and to protect the intellectual property\u00a0right of the\u00a0products.<\/li>\r\n\t<li>When viewing the combined\u00a0GDP\u00a0of its members, as of 2010 NAFTA is the largest\u00a0trade bloc\u00a0in the world.<\/li>\r\n<\/ul>\r\n<\/div>\r\n<\/section><\/div>\r\n<\/div>\r\n<\/div>\r\n<div><\/div>\r\n<div>\r\n<div>\r\n<h4><strong>Terms<\/strong><\/h4>\r\n<ul>\r\n\t<li><em>Trade bloc<\/em>:\u00a0 A trade bloc is a type of intergovernmental agreement, often part of a regional intergovernmental organization, where regional barriers to trade, (tariffs and non-tariff\u00a0barriers) are reduced or eliminated among the participating states.<\/li>\r\n\t<li><em>Free trade:\u00a0 <\/em>International trade free from government interference, especially trade free from tariffs or duties on\u00a0imports.<\/li>\r\n\t<li><em>Tariff:\u00a0 <\/em>A system of government-imposed duties levied on imported or exported\u00a0goods; a list of such duties, or the duties themselves.<\/li>\r\n<\/ul>\r\n<\/div>\r\n<div><\/div>\r\n<div>\r\n<h2><strong>The North American Free Trade Agreement (NAFTA)<\/strong><\/h2>\r\nThe North American Free Trade Agreement (NAFTA) is an agreement signed by the governments of Canada, Mexico, and the United States, creating a trilateral trade bloc in North America. The agreement came into force on January 1, 1994. It superseded the Canada \u2013 United States Free Trade Agreement between the U.S. and Canada.\r\n\r\nIn terms of combined GDP of its members, the trade bloc is the largest in the world as of 2010. NAFTA has two supplements: the North American Agreement on Environmental Cooperation (NAAEC) and the North American Agreement on Labor Cooperation (NAALC). The\u00a0goal\u00a0of NAFTA was to eliminate barriers to trade and\u00a0investment\u00a0among the U.S., Canada, and Mexico.\r\n\r\nThe implementation of NAFTA on January 1, 1994 brought the immediate elimination of tariffs on more than one-half of Mexico's exports to the U.S. and more than one-third of U.S. exports to Mexico. Within 10 years of the implementation of the agreement, all U.S.--Mexico tariffs would be eliminated except for some U.S. agricultural exports to Mexico that were to be phased out within 15 years. Most U.S.--Canada trade was already duty free. NAFTA also seeks to eliminate non-tariff trade barriers and to protect the intellectual property\u00a0rightof the products.\r\n\r\nThe agreement opened the door for open trade, ending tariffs on various goods and services, and implementing equality between Canada, America, and Mexico. NAFTA has allowed agricultural goods such as eggs, corn, and meats to be tariff-free. This allowed\u00a0corporations\u00a0to trade freely and import and export various goods on a North American scale .\r\n\r\n<figure id=\"fe3b9\"><img class=\"aligncenter\" src=\"https:\/\/figures.boundless.com\/4272\/raw\/orthographic-projection-29.svg\" alt=\"\" \/>\r\n<div>NAFTA countries<\/div>\r\n<figcaption>NAFTA member countries\u00a0<\/figcaption><\/figure>\r\n<h3><\/h3>\r\n<div class=\"bcc-box bcc-success\"><section id=\"glossary\">\r\n<h3>GLOSSARY<\/h3>\r\n<div data-type=\"definition\">\r\n<div>\r\n\r\n<strong>Bloc<\/strong>\r\n\r\nA group of countries acting together for political or economic goals, an alliance (e.g., the eastern bloc, the western bloc, a trading bloc).\u00a0a group of voters or politicians who share common goals.\r\n\r\n<\/div>\r\n<div><\/div>\r\n<div>\r\n\r\n<strong>Corporation<\/strong>\r\n\r\nA group of individuals, created by law or under authority of law, having a continuous existence independent of the existences of its members, and powers and liabilities distinct from those of its members.\u00a0a group of individuals, created by law or under authority of law, having a continuous existence independent of the existences of its members, and powers and liabilities distinct from those of its members.\r\n<div><\/div>\r\n<\/div>\r\n<div>\r\n\r\n<strong>Ending<\/strong>\r\n\r\nA termination or conclusion.\r\n<div><\/div>\r\n<\/div>\r\n<div>\r\n\r\n<strong>Export<\/strong>\r\n\r\nThis term export is derived from the conceptual meaning to ship the goods and services out of the port of a country.\u00a0to sell (goods) to a foreign country\u00a0Any good or commodity, transported from one country to another country in a legitimate fashion, typically for use in trade.\r\n<div><\/div>\r\n<\/div>\r\n<div>\r\n<div>\r\n\r\n<strong>GDP<\/strong>\r\n\r\nGross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period of time.\u00a0Gross Domestic Product (Economics). A measure of the economic production of a particular territory in financial capital terms over a specific time period.\r\n<div><\/div>\r\n<\/div>\r\n<div>\r\n\r\n<strong>Goal<\/strong>\r\n\r\nA desired result that one works to achieve.\u00a0A result that one is attempting to achieve.\u00a0a result that one is attempting to achieve.\r\n<div><\/div>\r\n<\/div>\r\n<div>\r\n\r\n<strong>Good<\/strong>\r\n\r\nAn object produced for market.\r\n<div><\/div>\r\n<\/div>\r\n<div>\r\n\r\n<strong>Import<\/strong>\r\n\r\nSomething brought in from an exterior source, especially for sale or trade.\u00a0To bring (something) in from a foreign country, especially for sale or trade.\r\n<div><\/div>\r\n<\/div>\r\n<div>\r\n\r\n<strong>Intellectual property<\/strong>\r\n\r\nAny product of someone's intellect that has commercial value: copyrights, patents, trademarks, and trade secrets.\u00a0Intellectual property (IP) is a juridical concept that refers to creations of the mind for which exclusive rights are recognized.\r\n<div><\/div>\r\n<\/div>\r\n<div>\r\n\r\n<strong>Investment<\/strong>\r\n\r\nThe expenditure of capital in expectation of deriving income or profit from its use.\r\n<div><\/div>\r\n<\/div>\r\n<div>\r\n\r\n<strong>Product<\/strong>\r\n\r\nAny tangible or intangible good or service that is a result of a process and that is intended for delivery to a customer or end user. Anything, either tangible or intangible, offered by the firm as a solution to the needs and wants of the consumer; something that is profitable or potentially profitable; goods or a service that meets the requirements of the various governing offices or society.\r\n<div><\/div>\r\n<\/div>\r\n<div>\r\n\r\n<strong>Right<\/strong>\r\n\r\nA legal or moral entitlement.\r\n<div><\/div>\r\n<\/div>\r\n<div>\r\n\r\n<strong>Services<\/strong>\r\n\r\nThat which is produced, then traded, bought or sold, then finally consumed and consists of an action or work.\r\n\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/section><\/div>\r\n<\/div>\r\n<\/div>","rendered":"<div>\n<div>\n<h2>NAFTA is an agreement signed by Canada, Mexico, and the United States, creating a trilateral trade bloc in North America.<\/h2>\n<\/div>\n<div>\n<div class=\"bcc-box bcc-success\">\n<h3>KEY\u00a0Points<\/h3>\n<section>\n<div data-type=\"note\">\n<ul>\n<li>The North American Free Trade Agreement (NAFTA) is an agreement signed by the governments of Canada, Mexico, and the United States, creating a trilateral trade\u00a0bloc\u00a0in North America.<\/li>\n<li>NAFTA came into effect on January 1, 1994 and superseded the Canada \u2013 United States\u00a0Free Trade\u00a0Agreement.<\/li>\n<li>Within 10 years of the implementation of NAFTA, all U.S.-Mexico tariffs are to be eliminated except for some U.S. agricultural\u00a0exports\u00a0to Mexico which will be phased out within 15 years.<\/li>\n<li>Most U.S. &#8211; Canada trade was duty free before NAFTA.<\/li>\n<li>NAFTA also seeks to eliminate non-tariff trade barriers and to protect the intellectual property\u00a0right of the\u00a0products.<\/li>\n<li>When viewing the combined\u00a0GDP\u00a0of its members, as of 2010 NAFTA is the largest\u00a0trade bloc\u00a0in the world.<\/li>\n<\/ul>\n<\/div>\n<\/section>\n<\/div>\n<\/div>\n<\/div>\n<div><\/div>\n<div>\n<div>\n<h4><strong>Terms<\/strong><\/h4>\n<ul>\n<li><em>Trade bloc<\/em>:\u00a0 A trade bloc is a type of intergovernmental agreement, often part of a regional intergovernmental organization, where regional barriers to trade, (tariffs and non-tariff\u00a0barriers) are reduced or eliminated among the participating states.<\/li>\n<li><em>Free trade:\u00a0 <\/em>International trade free from government interference, especially trade free from tariffs or duties on\u00a0imports.<\/li>\n<li><em>Tariff:\u00a0 <\/em>A system of government-imposed duties levied on imported or exported\u00a0goods; a list of such duties, or the duties themselves.<\/li>\n<\/ul>\n<\/div>\n<div><\/div>\n<div>\n<h2><strong>The North American Free Trade Agreement (NAFTA)<\/strong><\/h2>\n<p>The North American Free Trade Agreement (NAFTA) is an agreement signed by the governments of Canada, Mexico, and the United States, creating a trilateral trade bloc in North America. The agreement came into force on January 1, 1994. It superseded the Canada \u2013 United States Free Trade Agreement between the U.S. and Canada.<\/p>\n<p>In terms of combined GDP of its members, the trade bloc is the largest in the world as of 2010. NAFTA has two supplements: the North American Agreement on Environmental Cooperation (NAAEC) and the North American Agreement on Labor Cooperation (NAALC). The\u00a0goal\u00a0of NAFTA was to eliminate barriers to trade and\u00a0investment\u00a0among the U.S., Canada, and Mexico.<\/p>\n<p>The implementation of NAFTA on January 1, 1994 brought the immediate elimination of tariffs on more than one-half of Mexico&#8217;s exports to the U.S. and more than one-third of U.S. exports to Mexico. Within 10 years of the implementation of the agreement, all U.S.&#8211;Mexico tariffs would be eliminated except for some U.S. agricultural exports to Mexico that were to be phased out within 15 years. Most U.S.&#8211;Canada trade was already duty free. NAFTA also seeks to eliminate non-tariff trade barriers and to protect the intellectual property\u00a0rightof the products.<\/p>\n<p>The agreement opened the door for open trade, ending tariffs on various goods and services, and implementing equality between Canada, America, and Mexico. NAFTA has allowed agricultural goods such as eggs, corn, and meats to be tariff-free. This allowed\u00a0corporations\u00a0to trade freely and import and export various goods on a North American scale .<\/p>\n<figure id=\"fe3b9\"><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/figures.boundless.com\/4272\/raw\/orthographic-projection-29.svg\" alt=\"\" \/><\/p>\n<div>NAFTA countries<\/div><figcaption>NAFTA member countries\u00a0<\/figcaption><\/figure>\n<h3><\/h3>\n<div class=\"bcc-box bcc-success\">\n<section id=\"glossary\">\n<h3>GLOSSARY<\/h3>\n<div data-type=\"definition\">\n<div>\n<p><strong>Bloc<\/strong><\/p>\n<p>A group of countries acting together for political or economic goals, an alliance (e.g., the eastern bloc, the western bloc, a trading bloc).\u00a0a group of voters or politicians who share common goals.<\/p>\n<\/div>\n<div><\/div>\n<div>\n<p><strong>Corporation<\/strong><\/p>\n<p>A group of individuals, created by law or under authority of law, having a continuous existence independent of the existences of its members, and powers and liabilities distinct from those of its members.\u00a0a group of individuals, created by law or under authority of law, having a continuous existence independent of the existences of its members, and powers and liabilities distinct from those of its members.<\/p>\n<div><\/div>\n<\/div>\n<div>\n<p><strong>Ending<\/strong><\/p>\n<p>A termination or conclusion.<\/p>\n<div><\/div>\n<\/div>\n<div>\n<p><strong>Export<\/strong><\/p>\n<p>This term export is derived from the conceptual meaning to ship the goods and services out of the port of a country.\u00a0to sell (goods) to a foreign country\u00a0Any good or commodity, transported from one country to another country in a legitimate fashion, typically for use in trade.<\/p>\n<div><\/div>\n<\/div>\n<div>\n<div>\n<p><strong>GDP<\/strong><\/p>\n<p>Gross domestic product (GDP) is the market value of all officially recognized final goods and services produced within a country in a given period of time.\u00a0Gross Domestic Product (Economics). A measure of the economic production of a particular territory in financial capital terms over a specific time period.<\/p>\n<div><\/div>\n<\/div>\n<div>\n<p><strong>Goal<\/strong><\/p>\n<p>A desired result that one works to achieve.\u00a0A result that one is attempting to achieve.\u00a0a result that one is attempting to achieve.<\/p>\n<div><\/div>\n<\/div>\n<div>\n<p><strong>Good<\/strong><\/p>\n<p>An object produced for market.<\/p>\n<div><\/div>\n<\/div>\n<div>\n<p><strong>Import<\/strong><\/p>\n<p>Something brought in from an exterior source, especially for sale or trade.\u00a0To bring (something) in from a foreign country, especially for sale or trade.<\/p>\n<div><\/div>\n<\/div>\n<div>\n<p><strong>Intellectual property<\/strong><\/p>\n<p>Any product of someone&#8217;s intellect that has commercial value: copyrights, patents, trademarks, and trade secrets.\u00a0Intellectual property (IP) is a juridical concept that refers to creations of the mind for which exclusive rights are recognized.<\/p>\n<div><\/div>\n<\/div>\n<div>\n<p><strong>Investment<\/strong><\/p>\n<p>The expenditure of capital in expectation of deriving income or profit from its use.<\/p>\n<div><\/div>\n<\/div>\n<div>\n<p><strong>Product<\/strong><\/p>\n<p>Any tangible or intangible good or service that is a result of a process and that is intended for delivery to a customer or end user. Anything, either tangible or intangible, offered by the firm as a solution to the needs and wants of the consumer; something that is profitable or potentially profitable; goods or a service that meets the requirements of the various governing offices or society.<\/p>\n<div><\/div>\n<\/div>\n<div>\n<p><strong>Right<\/strong><\/p>\n<p>A legal or moral entitlement.<\/p>\n<div><\/div>\n<\/div>\n<div>\n<p><strong>Services<\/strong><\/p>\n<p>That which is produced, then traded, bought or sold, then finally consumed and consists of an action or work.<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/section>\n<\/div>\n<\/div>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-178\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>Boundless Business. <strong>Authored by<\/strong>: Boundless. <strong>Provided by<\/strong>: Boundless. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/www.boundless.com\/business\/\">https:\/\/www.boundless.com\/business\/<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><li>Image of NAFTA Countries. <strong>Authored by<\/strong>: Heraldry . <strong>Located at<\/strong>: <a target=\"_blank\" href=\"http:\/\/en.wikipedia.org\/wiki\/North_American_Free_Trade_Agreement#mediaviewer\/File:North_American_Agreement_(orthographic_projection).svg\">http:\/\/en.wikipedia.org\/wiki\/North_American_Free_Trade_Agreement#mediaviewer\/File:North_American_Agreement_(orthographic_projection).svg<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":9,"menu_order":4,"template":"","meta":{"_candela_citation":"[{\"type\":\"cc\",\"description\":\"Boundless Business\",\"author\":\"Boundless\",\"organization\":\"Boundless\",\"url\":\"https:\/\/www.boundless.com\/business\/\",\"project\":\"\",\"license\":\"cc-by-sa\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Image of NAFTA Countries\",\"author\":\"Heraldry \",\"organization\":\"\",\"url\":\"http:\/\/en.wikipedia.org\/wiki\/North_American_Free_Trade_Agreement#mediaviewer\/File:North_American_Agreement_(orthographic_projection).svg\",\"project\":\"\",\"license\":\"cc-by-sa\",\"license_terms\":\"\"}]","CANDELA_OUTCOMES_GUID":"","pb_show_title":"on","pb_short_title":"","pb_subtitle":"","pb_authors":[],"pb_section_license":""},"chapter-type":[],"contributor":[],"license":[],"class_list":["post-178","chapter","type-chapter","status-publish","hentry"],"part":166,"_links":{"self":[{"href":"https:\/\/courses.lumenlearning.com\/suny-internationalbusiness\/wp-json\/pressbooks\/v2\/chapters\/178","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/courses.lumenlearning.com\/suny-internationalbusiness\/wp-json\/pressbooks\/v2\/chapters"}],"about":[{"href":"https:\/\/courses.lumenlearning.com\/suny-internationalbusiness\/wp-json\/wp\/v2\/types\/chapter"}],"author":[{"embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-internationalbusiness\/wp-json\/wp\/v2\/users\/9"}],"version-history":[{"count":18,"href":"https:\/\/courses.lumenlearning.com\/suny-internationalbusiness\/wp-json\/pressbooks\/v2\/chapters\/178\/revisions"}],"predecessor-version":[{"id":921,"href":"https:\/\/courses.lumenlearning.com\/suny-internationalbusiness\/wp-json\/pressbooks\/v2\/chapters\/178\/revisions\/921"}],"part":[{"href":"https:\/\/courses.lumenlearning.com\/suny-internationalbusiness\/wp-json\/pressbooks\/v2\/parts\/166"}],"metadata":[{"href":"https:\/\/courses.lumenlearning.com\/suny-internationalbusiness\/wp-json\/pressbooks\/v2\/chapters\/178\/metadata\/"}],"wp:attachment":[{"href":"https:\/\/courses.lumenlearning.com\/suny-internationalbusiness\/wp-json\/wp\/v2\/media?parent=178"}],"wp:term":[{"taxonomy":"chapter-type","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-internationalbusiness\/wp-json\/pressbooks\/v2\/chapter-type?post=178"},{"taxonomy":"contributor","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-internationalbusiness\/wp-json\/wp\/v2\/contributor?post=178"},{"taxonomy":"license","embeddable":true,"href":"https:\/\/courses.lumenlearning.com\/suny-internationalbusiness\/wp-json\/wp\/v2\/license?post=178"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}