Guide Nafta

GUIDE:
REVAMPING NAFTA
WEBSITES OF OAS OR THE ORGANIZATIONS OF AMERICANS STATE
FOREIGN TRADE INFORMATION SYSTEM
 NAFTA - NORTH AMERICA FREE TRADE AGREEMENT
 USTR - UNITED STATE TRADE REPRESENTATIVE
 THE ONE WHO INITATE THE RENEGOTIATION IS THE US WHERE THEY AIM TO
MODERNIZED THE AGREEMENT AS THE ECONOMY ARE CHANGING, BUT NAFTA WAS
NOT OR OUT-DATED. THIS NEGOTIATION WILL HELP THE COUNTRIES (NORTH
AMERICA) TO SOLVE THE PROBLEMS AND IMPROVE THE CONTEXT OF NAFTA.
 MANY AMERICAN POLITICIANS PROMISE THAT THEY WILL RENEGOTIATE THE
NAFTA, AND ONE OF IT WHO PROMISE DURING HIS CAMPAIGN IS THE AMERICAN
FORMER PRESIDENT DONALD TRUMP DURING JUNE, 2016. As he was voted as President,
he immediately started work to fulfill that promise.
 The first NAFTA consultations began just a few weeks after the President took office.
 On May 18th, President Trump became the first American president to begin renegotiating a
comprehensive free trade agreement like NAFTA. At the direction of the President, and following
more than three months of Administration consultations with Congress, U.S. Trade
Representative Robert E. Lighthizer announced the Administration’s intention to renegotiate the
deal.
 ENTERED INTO FORCE OVER 23 YEARS AGO AND SINCE THAT TIME, THE U.S.
ECONOMY AND GLOBAL TRADING RELATIONSHIPS HAVE UNDERGO SUBSTANTIAL
CHANGES.
 SOME AMERICANS HAVE BENEFITED FROM NE MARKET ACCESS PROVIDED BY THE

AGREEMENT. IT CONTRIBUTED TO THE LINKING OF THE CONTINENT THROUGH
TRADE.
 But NAFTA also created new problems for many American workers. Since the deal came into
force in 1994, trade deficits have exploded, thousands of factories have closed, and millions of
Americans have found themselves stranded, no longer able to utilize skills for which they had
been trained. For years, politician promising to renegotiate the deals gave the Americans workers
hope to that they would stop the bleeding.
 May 18, 2017- start renegotiating a comprehensive free trade agreement like NAFTA
 USTR held 3 days of public hearings on the negotiations and heard from more than 140
witnesses, who provided testimony on the wide range of sectors, including agriculture,
manufacturing, services, and digital trade.
 The new NAFTA will be modernized to reflect 21 st century standards and will reflect a fairer deal,
addressing America’s persistent trade imbalance in North America.

 SUMMARY OF SPECIFIC NEGOTIATING OBJECTIVES FOR THE INITIATION OF NAFTA
NEGOTIATION
2
 Trade in goods
 Sanitary and phytosanitary measures
 Customs, trade facilitation, rules of origin
 Technical barriers to trade
 Good regulatory practices
 Trade in services, including telecommunications and financial services
 Digital trade in goods and services and cross-border data flows
 Investment
 Intellectual property
 Transparency
 State-owned and controlled enterprises
 Competition policy
 Labor
 Bring the labor provisions into the core of the agreement rather than in a side agreement.
 Requires NAFTA countries to adopt and maintain in their laws and practices the
internationally recognized core labor standards as recognized in the ILO Declaration
 Freedom of association and the effective recognition of the right to collective bargaining;
 Elimination of all forms of forced or compulsory labor;
 Effective abolition of child labor and a prohibition on the worst forms of child labor; and
 Elimination of discrimination in respect of employment and occupation.
 Require NAFTA countries to have laws governing acceptable conditions of work with
respect to minimum wages, hours of work, and occupational safety and health.
 Establish rules that will ensure that NAFTA countries do not waive or derogate from
their labor laws implementing internationally recognized core labor standards in a
manner affecting trade or investment between the parties.
 Establish rules that will ensure that NAFTA countries do not fail to effectively enforce
their labor laws implementing internationally recognized core labor standards and
acceptable conditions of work with respect to minimum wages, hours of work, and
occupational safety and health laws through a sustained or recurring course of action or
inaction, in a manner affecting trade or investment between the parties.
 Require that NAFTA countries take initiatives to prohibit trade in goods produced by
forced labor, regardless of whether the source country is a NAFTA country.
 Provide access to fair, equitable, and transparent administrative and judicial proceedings.
 Ensure that these labor obligations are subject to the same dispute settlement mechanism
that applies to other enforceable obligations of the Agreement.
 Establish a means for stakeholder participation, including through public advisory
committees, as well as a process for the public to raise concerns directly with NAFTA
governments if they believe a NAFTA country is not meeting its labor commitments.
3
 ENVIRONMENT
 ANTI-CORRUPTION
 TRADE REMEDIES
 GOVERNMENT PROCUREMENT
 SMALL AND MEDIUM-SIZED ENTERPRISES
 ENERGY
 DISPUTE SETTLEMENT
 GENERAL PROVISION
 CURRENCY
THE USMCA’s entry into force marks the beginning of the historic new chapter for North America
trade by supporting more balanced, reciprocal trade, leading to freer markets, fairer, trade, and
robust economic growth in North America.
4
Problem analysis
 Critics contend that this agreement has resulted in a flood of imports from Mexico into the United States
and Canada, which has led to job losses and trade deficits.
 NAFTA became effective during 1994, but after how many years it brings negative impact to the
countries, specially to the US, where former president trump said that this agreements led to a trade
deficits, factory closure and job losses in the US.
 This problem is about how Mexico offer cheaper wage than the US labors. Which it led to some
manufacturer to close and many workers stop to work. Because some of the organizations/company
choose Mexico labors. They saw that manufacturing jobs are declining and that is because of the
imbalance trade or unfair labor rights of the people between this countries.
 There have been concerns about non-tariff barriers to trade, such as technical regulations and standards,
that can hinder market access. These barriers disproportionately affect certain industries and limit
market opportunities for the United States and Canada.
 This agreements limit the market access of this three countries it is because the current agreement
does not provide everything , in which one of the objectives of the US in renegotiating the NAFTA,
is that they want to modernized the agreement. The world are changing, and so the economics of
the countries. And they want that the agreement able to adapt and reflect to the modern standards
and roles in order to have fairer deals, balance trade and more. Which it means that the NAFTA had
lacking or not able to adapt to the changes which bring conflicts and problems to the countries.
This problem is about the protectionism and technical barrier regulation
 NAFTA is lack of transparency, participation, and accountability, that led the countries failed to take the
environmental issues seriously.
 It also address that this agreement had an issues regarding to the environment protection.
 There are studies of civil society groups or non-profit organizations, which they identify that the
increased use of pesticides and chemicals in all three countries which it said that the NAFTA
agreements gives/results of a new export-oriented agriculture model. By that, it increase
deforestation and new threats to the biodiversity in Mexico, as well as depleted water resources.
 NAFTA has intensified fossil fuel extraction and use across North America, thus increasing
Canada’s greenhouse gas emission.
 Non-governmental studies, Canada, concluded that NAFTA has contributed to increase in air
pollution

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GUIDE:

 SOME AMERICANS HAVE BENEFITED FROM NE MARKET ACCESS PROVIDED BY THE

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