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Encyclopedia > North American Free Trade Agreement
The North American Free Trade Agreement
Tratado de Libre Comercio de América del Norte
Accord de libre-échange nord-américain
Emblem of the North American Free Trade Agreement
Secretariats Mexico City, Ottawa and Washington, D.C.
Official languages English, French and Spanish
Membership Flag of Canada Canada
Flag of Mexico Mexico
Flag of the United States United States
Establishment
 -  Formation 1 January 1994 
Area
 -  Total 21,783,850 km² (1st)
8,410,792 sq mi 
 -  Water (%) 7.4
Population
 -  2008 estimate 445,335,091 (3rd)
 -  Density 20.4/km² (195th)
52.9/sq mi
GDP (PPP) 2007 (IMF) estimate
 -  Total $15,857 billion (1st)
 -  Per capita $35,491 (14th)
GDP (nominal) 2007 (IMF) estimate
 -  Total $15,723 billion (1st)
 -  Per capita $35,564 (18th)
Website
http://www.nafta-sec-alena.org

The North American Free Trade Agreement (Spanish: Tratado de Libre Comercio de América del Norte (TLCAN)) (French: Accord de libre-échange nord-américain (ALENA)) is the trade bloc in North America created by the North American Free Trade Agreement (NAFTA) and its two supplements, the North American Agreement on Environmental Cooperation (NAAEC) and The North American Agreement on Labor Cooperation (NAALC), whose members are Canada, Mexico, and the United States. It came into effect on January 1, 1994 and (as of 2008) it remains the largest trade bloc in the world in terms of combined GDP of its members. Nafta or NAFTA may refer to: an acronym for the North American Free Trade Agreement an acronym for the New Zealand Australia Free Trade Agreement the town of Nafta, Tunisia the polish name for Kerosene This is a disambiguation page: a list of articles associated with the same title. ... Image File history File links No higher resolution available. ... Image File history File links Download high-resolution version (1427x628, 30 KB) File links The following pages on the English Wikipedia link to this file (pages on other projects are not listed): North American Free Trade Agreement ... Mexico City (in Spanish: Ciudad de México, México, D.F. or simply México) is the capital city of Mexico. ... This article is about the capital city of Canada. ... For other uses, see Washington, D.C. (disambiguation). ... The English language is a West Germanic language that originates in England. ... Image File history File links This is a lossless scalable vector image. ... Image File history File links Flag_of_Mexico. ... Image File history File links This is a lossless scalable vector image. ... is the 1st day of the year in the Gregorian calendar. ... Year 1994 (MCMXCIV) The year 1994 was designated as the International Year of the Family and the International Year of the Sport and the Olympic Ideal by the United Nations. ... This article is about the physical quantity. ... To help compare sizes of different areas, here is a list of areas between 10 million km² and 100 million km². See also areas of other orders of magnitude. ... This is a list of the countries of the world sorted by area. ... A square mile is an English unit of area equal to that of a square with sides each 1 statute mile (≈1,609 m) in length. ... Impact from a water drop causes an upward rebound jet surrounded by circular capillary waves. ... A percentage is a way of expressing a proportion, a ratio or a fraction as a whole number, by using 100 as the denominator. ... This is a list of countries ordered according to population. ... Population density per square kilometre by country, 2006 Population density map of the world in 1994. ... Population density by country, 2006 List of countries and dependencies by population density in inhabitants/km². The list includes sovereign states and self-governing dependent territories that are recognized by the United Nations. ... PPP of GDP for the countries of the world (2003). ... IMF redirects here. ... There are three lists of countries of the world sorted by their gross domestic product (GDP) (the value of all final goods and services produced within a nation in a given year). ... Per capita is a Latin phrase meaning for each head. ... This article includes two lists of countries of the world[1] sorted by their gross domestic product (GDP) at purchasing power parity (PPP) per capita, the value of all final goods and services produced within a nation in a given year divided by the average population for the same year. ... IMF redirects here. ... Countries by nominal GDP. Source: IMF (2005) This article includes a list of countries of the world sorted by their gross domestic product (GDP), the value of all final goods and services produced within a nation in a given year. ... Per capita is a Latin phrase meaning for each head. ... Map of countries by GDP (nominal) per capita for the year 2006. ... A trade bloc is a large free trade area or free trade area formed by one or more tax, tariff and trade agreements. ... North American redirects here. ... NAFTA redirects here. ... NAFTA redirects here. ... is the 1st day of the year in the Gregorian calendar. ... Year 1994 (MCMXCIV) The year 1994 was designated as the International Year of the Family and the International Year of the Sport and the Olympic Ideal by the United Nations. ... 2008 (MMVIII) will be a leap year starting on Tuesday of the Gregorian calendar. ... GDP is an acronym which can stand for more than one thing: (in economics) an abbreviation for Gross Domestic Product. ...

Contents

The agreements

The North American Free Trade Agreement

NAFTA eliminated the majority of tariffs on products traded among the United States, Canada, and Mexico, and gradually phased out other tariffs over a 15-year period. Restrictions were to be removed from many categories, including motor vehicles, computers, textiles, and agriculture. The treaty also protects intellectual property rights (patents, copyrights, and trademarks), and outlines the removal of investment restrictions among the three countries. The treaty is trilateral in nature; the terms apply equally to all countries, in all areas except agriculture, in which stipulations, tariff reduction phase-out periods, and protection of selected industries, were negotiated on a bilateral basis. Provisions regarding worker and environmental protection were added later as a result of supplemental agreements signed in 1992. A tariff is a tax placed on imported and/or exported goods, sometimes called a customs duty. ... This article is about the machine. ... For other uses, see Textile (disambiguation). ... In law, particularly in common law jurisdictions, intellectual property is a form of legal entitlement which allows its holder to control the use of certain intangible ideas and expressions. ... For other uses, see Patent (disambiguation). ... Not to be confused with copywriting. ... “(TM)” redirects here. ...


NAFTA was an expansion of the earlier Canada-U.S. Free Trade Agreement of 1988. NAFTA is a treaty under international law, though under United States law, it is classed as a congressional-executive agreement rather than a treaty. The Free Trade Agreement (FTA) was a trade agreement reached by Canada and the United States in October of 1987. ... This article or section is in need of attention from an expert on the subject. ... A congressional-executive agreement is an agreement with a foreign power that has been approved by U.S. Congress and the United States. ...


The North American Agreement on Environmental Cooperation

The North American Agreement on Environmental Cooperation (NAAEC) was a response to environmentalists' concerns that the United States would lower its standards if the three countries did not achieve consistent environmental regulation. The NAAEC only obligates parties to enforce their own environmental laws. The NAAEC, in an endeavour to be more than a set of environmental regulations, established the North American Commission for Environmental Cooperation, a mechanism for addressing trade and environmental issues, the North American Development Bank (NADBank) for assisting and financing investments in pollution reduction, and the Border Environmental Cooperation Commission (BECC). The NADBank and the BECC have provided economic benefits to Mexico by financing 36 projects, mostly in the water sector.[1] Wikisource has original text related to this article: Full text of the North American Agreement on Environmental Cooperation 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 historic Blue Marble photograph, which helped bring environmentalism to the public eye. ... The North American Development Bank (NADB) is a binational financial institution capitalized and governed equally by the United States of America and Mexico for the purpose of financing environmental projects certified by the Border Environment Cooperation Commission (BECC). ...


The North American Agreement on Labor Cooperation

The North American Agreement on Labor Cooperation (NAALC) supplements NAFTA and endeavors to create a foundation for cooperation among the three countries for the resolution of labor problems, as well as to promote greater cooperation among trade unions and social organizations in order to fight for improved labor conditions. Though most economists agree that it is difficult to assess the direct impact of the NAALC, it is agreed that there has been a convergence of labor standards in North America. Given its limitations, however, NAALC has not produced (and in fact was not intended to achieve) convergence in employment, productivity and salary trends in North America. A union (labor union in American English; trade union, sometimes trades union, in British English; either labour union or trade union in Canadian English) is a group of workers who act collectively to address common issues. ... North American redirects here. ...


Further integration

While different groups advocate for a further integration into a North American Community, sensitive issues have hindered that process. The three countries have pursued different trade policies with non-members (for example, Mexico has signed FTAs with more than 40 countries in 12 agreements), making the possibility of creating a customs union difficult to accomplish. Former President Vicente Fox of Mexico had promoted the idea of enhancing NAFTA (into what he labeled "NAFTA-Plus", or possibly a North American Community), but after the September 11, 2001 attacks, priorities in the United States changed. The Security and Prosperity Partnership of North America was signed, instead, as a separate and unrelated agreement. ... Free trade is an economic concept referring to the selling of products between countries without tariffs or other trade barriers. ... Vicente Fox Quesada (born July 2, 1942) was the President of Mexico from 2000 to 2006. ... A sequential look at United Flight 175 crashing into the south tower of the World Trade Center The September 11, 2001 attacks (often referred to as 9/11—pronounced nine eleven or nine one one) consisted of a series of coordinated terrorist[1] suicide attacks upon the United States, predominantly... The Security and Prosperity Partnership of North America is a continent-level agreement, founded on March 23, 2005 by the governments of Canada, Mexico and the United States. ...


Given the scope of the agreement, which includes very sensitive issues in trade talks such as agriculture liberalization and environment regulation, few countries have shown interest in joining NAFTA. Instead, some countries, like Chile, preferred to negotiate three separate bilateral agreements with the three current NAFTA members, with different restrictions to liberalization of their industries and the regulation of environment protection. Jamaica and Trinidad and Tobago also showed a similar interest.[2][3][4]


In an interview with Larry King on October 8, 2007, Fox described any plans for a North American single currency as a "Long term, very long term" proposal. He also spoke of his and U.S. President George W. Bush's support for the Free Trade Area of the Americas as a "first step" toward "a new vision" for the Americas, "like we are trying to do with NAFTA," but then said that Venezuelan President Hugo Chávez had decided to "destroy the idea".[5] This article is about the television show host. ... is the 281st day of the year (282nd in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... The Fraser Institutes proposed symbol/logo for the amero The North American currency union is a controversial proposal in which the three principal countries of North America, namely Canada, the United States and Mexico, would share a common currency. ... George Walker Bush (born July 6, 1946) is the forty-third and current President of the United States of America, originally inaugurated on January 20, 2001. ... This article or section needs to be updated. ... The Presidential Army Ensign of Venezuela. ... Hugo Rafael Chávez Frías (pronounced ) (born July 28, 1954) is the current President of Venezuela. ...


History of the implementation

NAFTA was initially pursued by corporate interest[citation needed] in the United States and Canada supportive of free trade, led by Canadian Prime Minister Brian Mulroney, U.S. President George H. W. Bush, and the Mexican President Carlos Salinas de Gortari. The three countries signed NAFTA in December 1992, subject to ratification by the legislatures of the three countries. There was considerable opposition in all three countries. In the United States, NAFTA was able to secure passage after Bill Clinton made its passage a major legislative priority in 1993. Since the agreement had been signed by Bush under his fast-track prerogative, Clinton did not alter the original agreement, but complemented it with the aforementioned NAAEC and NAALC. After intense political debate and the negotiation of these side agreements, the U.S. House of Representatives passed NAFTA on November 17, 1993, by 234-200 vote (132 Republicans and 102 Democrats voting in favor; 43 Republicans, 156 Democrats, and 1 independent against),[6] and the U.S. Senate passed it on the last day of its 1993 session, November 20, 1993, by 61-38 vote (34 Republicans and 27 Democrats voting in favor; 10 Republicans and 28 Democrats against, with 1 Democrat opponent not voting -- Sen. Byron Dorgan (D-ND), an ardent foe of NAFTA, missed the vote because of an illness in his family).[7] Martin Brian Mulroney PC CC GOQ (predominantly known as Brian Mulroney) (born March 20, 1939), was the eighteenth Prime Minister of Canada from September 17, 1984, to June 25, 1993 and was leader of the Progressive Conservative Party of Canada from 1983 to 1993. ... George Herbert Walker Bush (born June 12, 1924) was the 41st President of the United States, serving from 1989 to 1993. ... Carlos Salinas de Gortari (born April 3, 1948 in Mexico City) was President of Mexico from 1988 to 1994. ... 1992 (MCMXCII) was a leap year starting on Wednesday. ... William Jefferson Bill Clinton (born William Jefferson Blythe III[1] on August 19, 1946) was the 42nd President of the United States, serving from 1993 to 2001. ... The House of Representatives is the larger of two houses that make up the U.S. Congress, the other being the United States Senate. ... This article is about the modern United States Republican Party. ... The Democratic Party is one of the two major United States political parties. ... In politics, an independent is a politician who is not affiliated with any political party. ... The United States Senate is the upper house of the U.S. Congress, smaller than the United States House of Representatives. ... Byron Leslie Dorgan (born May 14, 1942) is the junior United States Senator from North Dakota. ... Federal courts Supreme Court Circuit Courts of Appeal District Courts Elections Presidential elections Midterm elections Political Parties Democratic Republican Third parties State & Local government Governors Legislatures (List) State Courts Local Government Other countries Atlas  Politics Portal      Further information: Politics of the United States#Organization of American political parties The Democratic... Official language(s) English Capital Bismarck Largest city Fargo Area  Ranked 19th  - Total 70,762 sq mi (183,272 km²)  - Width 210 miles (340 km)  - Length 340 miles (545 km)  - % water 2. ...


Effects

The effects of NAFTA, both positive and negative, have been quantified by several economists, whose findings have been reported in publications such as the World Bank's Lessons from NAFTA for Latin America and the Caribbean,[8] NAFTA's Impact on North America,[9] and NAFTA Revisited by the Institute for International Economics.[10] Some argue that NAFTA has been positive for Mexico, which has seen its poverty rates fall and real income rise, even after accounting for the 1994–1995 economic crisis.[11] Others argue that NAFTA has been beneficial to business owners and elites in all three countries, but has had negative impacts on farmers in Mexico who saw food prices fall based on cheap imports from highly subsidized U.S. agribusiness, and negative impacts on US 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,[12] nor to substantially reduce poverty rates. Some have suggested that in order to fully benefit from the agreement, Mexico must invest more in education and promote innovation in infrastructure and agriculture. The World Bank logo The World Bank (the Bank) is a part of the World Bank Group (WBG), is a bank that makes loans to developing countries for development programs with the stated goal of reducing poverty. ... A boy from an East Cipinang trash dump slum in Jakarta, Indonesia shows what he found. ... Income, generally defined, is the money that is received as a result of the normal business activities of an individual or a business. ... In economics, a subsidy is generally a monetary grant given by a government to lower the price faced by producers or consumers of a good, generally because it is considered to be in the public interest. ... In agriculture, agribusiness is a generic term that refers to the various businesses involved in the food production chain, including farming, seed, agrichemicals, farm machinery, wholesaling, processing, distribution, and retail sales. ...


Trade

Trade has increased dramatically among the three nations since NAFTA. In the period of 1993–2004, total trade between the United States and its NAFTA partners increased 129.3 percent (110.1 percent with Canada and 100.9 percent with Mexico), yet total trade between the United States and non-NAFTA partners increased 123.8 percent in the same period. According to Hufbauer (2005), overall, NAFTA has not caused trade diversion, aside from a few select industries such as textiles and apparel, in which rules of origin negotiated in the agreement were specifically designed to make U.S. firms prefer Mexican manufacturers. The World Bank also showed that the collected NAFTA imports' percentage growth was accompanied by an almost similar increase of non-NAFTA imports. Trade diversion is an economic term related to international economics in which trade is diverted by the formation of a customs union. ... For other uses, see Textile (disambiguation). ... The World Bank logo The World Bank (the Bank) is a part of the World Bank Group (WBG), is a bank that makes loans to developing countries for development programs with the stated goal of reducing poverty. ...


Industry

Maquiladoras (Mexican factories which take in imported raw materials and produce goods for export) have become the landmark of trade in Mexico. Hufbauer's (2005) book shows that income in the maquiladora sector has increased 15.5% since the implementation of NAFTA in 1994. Other sectors now benefit from the free trade agreement, and the share of exports from non-border states has increased in the last five years while the share of exports from maquiladora-border states has decreased. This phenomenon has allowed for the rapid growth of non-border metropolitan areas, such as Toluca, León and Puebla; all three larger in population than Tijuana, Ciudad Juárez, and Reynosa. The main non-maquiladora industry that has benefited from NAFTA is the automobile industry, whose standards of quality are internationally recognized (having to comply to U.S., European Union, and Japanese standards). A maquiladora or maquila is a factory that imports materials and equipment on a duty-free and tariff-free basis for assembly or manufacturing and then re-exports the assembled product, usually back to the originating country. ... This article is about a city in Mexico. ... Calle 5 de Mayo. ... Nickname: Location of Puebla in central Mexico Coordinates: Country Mexico State Puebla Founded 1531 Government  - Mayor Enrique Doger (PRI) Area  - City 546 km²  (211 sq mi) Elevation 2,175 m (7,136 ft) Population (2005)  - City 1,485,941  - Density 5,741/km² (14,869. ... Tijuana (Spanish [], English usually []), is the largest city in the Mexican state of Baja California and the seat of the municipality of Tijuana. ... Ciudad Juárez, or simply Juárez, is a city in the Mexican state of Chihuahua formerly known as El Paso del Norte. ... Reynosa is a primarily industrial city in the Mexican state of Tamaulipas. ...


Agriculture

From the earliest negotiation, agriculture was (and remains) a controversial topic within NAFTA, as it has been with almost all free trade agreements that have been signed within the WTO framework. Agriculture is the only section that was not negotiated trilaterally; instead, 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 (ironically, it was the first North-South FTA on agriculture to be signed). Free trade is an economic concept referring to the selling of products between countries without tariffs or other trade barriers. ... For other uses of the initials WTO, see WTO (disambiguation). ... In general, liberalization refers to a relaxation of previous government restrictions, usually in areas of social or economic policy. ... The updated view of the north-south divide based on its accurate definition of the north. ...


The overall effect of the Mexico-U.S. agricultural agreement is a matter of dispute. Mexico did not invest in the infrastructure necessary for competition, such as efficient railroads and highways, creating more difficult living conditions for the country's poor. Still, the causes of rural poverty cannot be directly attributed to NAFTA; in fact, Mexico's agricultural exports increased 9.4 percent annually between 1994 and 2001, while imports increased by only 6.9 percent a year during the same period.[13]


Production of corn in Mexico has increased since NAFTA's implementation. However, internal corn demand has increased beyond Mexico's sufficiency, and imports have become necessary, far beyond the quotas Mexico had originally negotiated.[14] Zahniser & Coyle have also pointed out that corn prices in Mexico, adjusted for international prices, have drastically decreased, yet through a program of direct income transfer (a subsidy) expanded by former president Vicente Fox, production has remained stable since 2000.[15] Binomial name L. Corn (Zea mays L. ssp. ... Vicente Fox Quesada (born July 2, 1942) was the President of Mexico from 2000 to 2006. ...


The logical result of a lower commodity price is that more use of it is made downstream. Unfortunately, many of the same rural people who would have been likely to produce higher-margin value-added products in Mexico have instead emigrated. The rise in corn prices due to increased ethanol demand may improve the situation of corn farmers in Mexico. A memorial statue in Hanko, Finland, commemorating the thousands of emigrants who left the country to start a new life in the United States Emigration is the act and the phenomenon of leaving ones native country or region to settle in another. ...


Mobility of persons

According to the Department of Homeland Security Yearbook, during fiscal year 2006 (i.e. October 2005 through September 2006), 74,098 foreign professionals (64,633 Canadians and 9,247 Mexicans) were admitted into the United States for temporary employment under NAFTA (i.e. in the TN status). Additionally, 17,321 of their family members (13,136 Canadians, 2,904 Mexicans, as well as a number of third-country nationals married to Canadians and Mexicans) entered the U.S. in the treaty national's dependent (TD) status.[16] Since what the DHS actually counts is the number of the new I-94 arrival records filled at the border, and the TN-1 admission is valid for one year, the number of non-immigrants in TN status present in the U.S. at the end of the fiscal year is approximately equal to the number of admissions during the year. (A discrepancy may be caused by some TN entrants leaving the country or changing status before their one-year admission period expired, while other aliens admitted earlier may change their status to TN or TD, or extend earlier granted TN status). The United States Department of Homeland Security (DHS) is a Cabinet department of the federal government of the United States that is concerned with protecting the American homeland and the safety of American citizens. ... 2005 : January - February - March - April - May - June - July - August - September - October - November - December- → Deaths in October 28: Richard Smalley 26: Emil Kyulev 24: José Azcona del Hoyo 24: Rosa Parks 23: Stella Obasanjo 22: Liam Lawlor 22: Shirley Horn 20: Endon Mahmood 17: Ba Jin 10: Milton Obote 7: Charles... September 2006 is the ninth month of 2006 and has begun on a Friday. ... TN (Trade NAFTA) status is a special United States immigration status unique to citizens of Canada and Mexico. ...


Canadian authorities estimated that as of December 1, 2006, the total of 24,830 US citizens and 15,219 Mexican citizens were present in Canada as "foreign workers". These numbers include both entrants under the NAFTA agreement and those who have entered under other provisions of the Canadian immigration law.[17] New entries of foreign workers in 2006 were 16,841 (US citizens) and 13,933 (Mexicans).[18] is the 335th day of the year (336th in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ...


Criticism and controversies

Canadian disputes

There is some concern in Canada over the provision that if something is sold even once as a commodity, the government cannot stop its sale in the future.[citation needed] This applies to the water from Canada's lakes and rivers, fueling fears over the possible destruction of Canadian ecosystems and water supply. This article does not cite any references or sources. ... A coral reef near the Hawaiian islands is an example of a complex marine ecosystem. ...


Other fears come from the effects NAFTA has had on Canadian lawmaking. In 1996, MMT, a gasoline additive that some studies had linked to nerve damage, was brought into Canada by an American company. The Canadian federal government banned the importation of the additive. The American company brought a claim under NAFTA Chapter 11 seeking US $201 million,[19] and by Canadian Provinces under the Agreement on Internal Trade ("AIT"). The American company argued that their additive had not been conclusively linked to any health dangers, and that the prohibition was damaging to their company. Following a finding that the ban was a violation of the AIT,[20] the Canadian federal government repealed the ban and settled with the American company for US $13 million.[21] Methylcyclopentadienyl manganese tricarbonyl (MMT) is an organometallic compound with the formula (CH3C5H4)Mn(CO)3. ...


The United States and Canada had been arguing for years over the United States' decision to impose a 27 percent duty on Canadian softwood lumber imports, until new Canadian Prime Minister Stephen Harper compromised with the United States and reached a settlement on July 1, 2006,[22] though the settlement has not yet been ratified by either country, in part due to domestic opposition in Canada. To meet Wikipedias quality standards, this article or section may require cleanup. ... Despite being fairly hard, cedar is a softwood Softwood is a generic term used in woodworking and the lumber industries for wood from conifers (needle-bearing trees from the order Pinales). ... Stephen Joseph Harper (born April 30, 1959) is the 22nd and current Prime Minister of Canada and leader of the Conservative Party of Canada. ... is the 182nd day of the year (183rd in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ...


Canada had filed numerous motions to have the duty eliminated and the collected duties returned to Canada.[23] After the United States lost an appeal from a NAFTA panel, it responded by saying "We are, of course, disappointed with the [NAFTA panel's] decision, but it will have no impact on the anti-dumping and countervailing duty orders", (Neena Moorjani, spokeswoman for U.S. Trade Representative Rob Portman).[24] On July 21, 2006, the U.S. Court of International Trade found that imposition of the duties was contrary to U.S. law.[25][26] In law, an appeal is a process for making a formal challenge to an official decision. ... is the 202nd day of the year (203rd in leap years) in the Gregorian calendar. ... Year 2006 (MMVI) was a common year starting on Sunday of the Gregorian calendar. ...


Canadian government challenged on change in Income trust taxation

On October 30, 2007 American citizens Marvin and Elaine Gottlieb filed a Notice of Intent to Submit a Claim to Arbitration under NAFTA. The couple claims thousands of US investors lost a total of $5 billion dollars in the fall-out from the Conservative Government's decision last year to effectively tax income trusts in the energy sector out of existence. is the 303rd day of the year (304th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... An income trust is an investment trust that holds income-producing assets. ...


Under the NAFTA, Canada is not allowed to target other NAFTA citizens when they impose new measures. Canadian Federal Finance Minister Jim Flaherty is on record that energy trusts were included because of their high U.S. ownership, while Real Estate Investment Trusts, owned mostly by Canadians, were excluded. NAFTA also stipulates that Canada must pay compensation for destroying investment by U.S. investors. The Government of Canada's 2006 Halloween tax changes for income trusts were designed to eliminate the income trust model for investment by U.S. citizens. The NAFTA says that U.S. investors are entitled to rely upon Canadian government promises. Harper repeatedly made a public promise that his Government would not tax trusts, as had the previous Liberal Government. Canada's tax treaty with the United States also says that trust income will not be taxed at more than 15 percent. James Michael Jim Flaherty, PC, BA, LL.B, MP (born December 30, 1949) is Canadas Minister of Finance; he had formerly served as Ontarios Minister of Finance. ... // A Real Estate Investment Trust or REIT (rēt, rhymes with treat) is a tax designation for a corporation investing in real estate that reduces or eliminates corporate income taxes. ... This article is about the holiday. ... ...


The Gottliebs maintain a website for American and Mexican citizens interested in filing a NAFTA claim against the Government of Canada.[27]


U.S. deindustrialization

An increase in domestic manufacturing output and a proportionally greater domestic investment in manufacturing does not necessarily mean an increase in domestic manufacturing jobs; it may simply reflect greater automation and higher productivity. Although the U.S. total civilian employment rate may have grown by almost 15 million in between 1993 and 2001, manufacturing jobs only increased by 476,000 between January 1, 1994 and January 1, 2001.[28] Furthermore from 1994 to 2007, net manufacturing employment has declined by 3,654,000, and during this period several other free trade agreements have been concluded or expanded.[29] is the 1st day of the year in the Gregorian calendar. ... Year 1994 (MCMXCIV) The year 1994 was designated as the International Year of the Family and the International Year of the Sport and the Olympic Ideal by the United Nations. ... is the 1st day of the year in the Gregorian calendar. ... Year 2001 (MMI) was a common year starting on Monday (link displays the 2001 Gregorian calendar). ...


Impact on Mexican farmers

In 2000, U.S. government subsidies to the corn sector totaled $10.6 billion, a figure ten times greater than the total Mexican agricultural budget that year.[30] Other studies reject NAFTA as the force responsible for depressing the incomes of poor corn farmers, citing the trend's existence more than a decade before NAFTA's existence, an increase in maize production after NAFTA went into effect in 1994, and the lack of a measurable impact on the price of Mexican corn due to subsidized corn coming into Mexico from the United States, though they agree that the abolition of U.S. agricultural subsidies would benefit Mexican farmers.[31]


Chapter 11

Another contentious issue is the impact of the investment obligations contained in Chapter 11 of the NAFTA.[32] Chapter 11 allows corporations or individuals to sue Mexico, Canada, or the United States for compensation when actions taken by those governments (or by those for whom they are responsible at international law, such as provincial, state, or municipal governments) have adversely affected their investments.


This chapter has been invoked in cases where governments have passed laws or regulations with intent to protect their constituents and their resident businesses' profits. Language in the chapter defining its scope states that it cannot be used to "prevent a Party from providing a service or performing a function such as law enforcement, correctional services, income security or insurance, social security or insurance, social welfare, public education, public training, health, and child care, in a manner that is not inconsistent with this Chapter.[33]" Social security primarily refers to social welfare service concerned with social protection, or protection against socially recognized conditions, including poverty, old age, disability, unemployment and others. ... Insurance, in law and economics, is a form of risk management primarily used to hedge against the risk of a contingent loss. ... // Public spending on education in 2005 Public education is education mandated for or offered to the children of the general public by the government, whether national, regional, or local, provided by an institution of civil government, and paid for, in whole or in part, by taxes. ...


This also accounts for the high volume of debt which is increased in the Mexican environments throughout the country and the various manifestos that implement themselves on this particular view.


This chapter has been criticized by groups in the U.S.[34]", Mexico[35] and Canada[36] for a variety of reasons, including not taking into account important social and environmental considerations. In Canada, several groups, including the Council of Canadians, challenged the constitutionality of Chapter 11. They lost at the trial level,[37] and have subsequently appealed.


Methanex, a Canadian corporation, filed a US$970 million suit against the United States, claiming that a California ban on MTBE, a substance that had found its way into many wells in the state, was hurtful to the corporation's sales of methanol. However, the claim was rejected, and the company was ordered to pay US$3 million to the U.S. government in costs.[38] The United States dollar is the official currency of the United States. ... This article is about the U.S. state. ... MTBE is highly flammable and is widely used as an oxygenate. ... Methanol, also known as methyl alcohol, carbinol, wood alcohol, wood naptha or wood spirits, is a chemical compound with chemical formula CH3OH. It is the simplest alcohol, and is a light, volatile, colourless, flammable, poisonous liquid with a distinctive odor that is somewhat milder and sweeter than ethanol (ethyl alcohol). ...


In another case, Metalclad, an American corporation, was awarded US$15.6 million from Mexico after a Mexican municipality refused a construction permit for the hazardous waste landfill it intended to construct in El Llano, Aguascalientes. The construction had already been approved by the federal government with various environmental requirements imposed (see paragraph 48 of the tribunal decision). The NAFTA panel found that the municipality did not have the authority to ban construction on the basis of the alleged environmental concerns[39] Metalclad- A landfill managenent firm that started a NAFTA contorversy in Mexicos poor city of Guadalazara. ... This article describes hazardous waste as a substance; for the Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal see Basel Convention Put simply, a Hazardous waste is waste that poses substantial or potential threats to public health or the environment and generally exhibits one... El Llano is a municipality in the Mexican state of Aguascalientes. ... Aguascalientes IPA: is a state of Mexico, situated in the center of the country. ...


Chapter 19

Also contentious is NAFTA's Chapter 19, which subjects antidumping and countervailing duty (AD/CVD) determinations with binational panel review instead of, or in addition to, conventional judicial review. For example, in the United States, review of agency decisions imposing antidumping and countervailing duties are normally heard before the U.S. Court of International Trade, an Article III court. NAFTA parties, however, have the option of appealing the decisions to binational panels composed of five citizens from the two relevant NAFTA countries. The panelists are generally lawyers experienced in international trade law. Since the NAFTA does not include substantive provisions concerning AD/CVD, the panel is charged with determining whether final agency determinations involving AD/CVD conform with the country's domestic law. Chapter 19 can be considered as somewhat of an anomaly in international dispute settlement since it does not apply international law, but requires a panel composed of individuals from many countries to reexamine the application of one country's domestic law. Antidumping is a means to restrict international trade without tariffs. ... Countervailing duties are a means to restrict international trade in cases where imports are subsidized by a foreign country and hurt domestic producers. ... United States International Court of Trade. ... In the United States, federal courts or tribunals can be classified as either Article I tribunals or Article III tribunals. ...


A Chapter 19 panel is expected to examine whether the agency's determination is supported by "substantial evidence." This standard assumes significant deference to the domestic agency.


Some of the most controversial trade disputes in recent years, such as the U.S.-Canada softwood lumber dispute, have been litigated before Chapter 19 panels. To meet Wikipedias quality standards, this article or section may require cleanup. ...


Decisions by Chapter 19 panels can be challenged before a NAFTA extraordinary challenge committee. However, an extraordinary challenge committee does not function as an ordinary appeal. Under the NAFTA, it will only vacate or remand a decision if the decision involves a significant and material error that threatens the integrity of the NAFTA dispute settlement system. As of January 2006, no NAFTA party has successfully challenged a Chapter 19 panel's decision before an extraordinary challenge committee. To suggest a relevant news story for the main page, refer to the criteria then add your suggestion at the candidates page. ...


Chapter 20

Chapter 20 provides a procedure for the interstate resolution of disputes over the application and interpretation of the NAFTA. It was modeled after Chapter 18 of the Canada-United States Free Trade Agreement.[40]


Chapter 14

"This chapter dealing with Financial Services provides for the same procedure as Chapter 20, except that the members of the panel shall be selected from a roster of fifteen persons who “have expertise in financial services law or practice...” The roster has never been made public and no dispute has yet occurred under this chapter."[41]


Public opinion

Public opinion toward NAFTA in Mexico, Canada and the United States is mixed. A July 2004 survey conducted by CIDE and COMEXI in Mexico showed that 64 percent of the Mexican public favored NAFTA. The Program on International Policy Attitudes reported in a January 2004 poll that 47 percent of Americans thought that NAFTA has been good for the United States, while 39 percent thought it had been bad for the country.[42] A recent Rasmussen report, however, shows that only 16% of likely Democratic voters in the 2008 presidential election support NAFTA, while 53% disapprove of the trade agreement.[43] 2004 : January - February - March - April - May - June - July - August - September - October - November - December See also: July 2004 in sports Deaths in July • 31 David B. Haight • 29 Francis Crick • 29 Nafisa Joseph • 23 Joe Cahill • 23 Mehmood • 23 Illinois Jacquet • 23 Carlos Paredes • 22 Sacha Distel • 21 Jerry Goldsmith • 21... The Collaborative International Dictionary of English, CIDE for short, was derived from the 1913 Websters Dictionary and has been supplemented with some of the definitions from WordNet. ... The Program on International Policy Attitudes (PIPA) is an institution devoted to research on the public opinion of international politics. ... January 2004 : ← - January - February - March - April - May - June - July - August - September - October - November - December- → Irelands Roman Catholic and Protestant Boy Scouts organisations merge after nearly a century of division, in spite of efforts by the Roman Catholic bishops to block the merger. ...


A Canadian poll conducted in June 2003 by Ipsos Reid found that 70 percent of Canadians supported NAFTA, while only 26 percent were opposed. However, a May 2004 Ipsos poll found that "Six in ten Canadians (62 percent) disagree that Canada should sign a trade agreement that would open Canada’s public services to competition from foreign companies" and "A further six in ten (60 percent) disagree that government should sign deals that would allow corporations to directly sue the Government of Canada if our public policies impair their ability to make profits".[44] June 2003 : January - February - March - April - May - June - July - August - September - October - November - December Events June 1, 2003 The Group of Eight summit opens in Evian, France to tight security and tens of thousands of protestors. ... Ipsos-Reid is a research company founded in 1975 by Didier Truchot, a Paris-based communications specialist. ... 2004 : January - February - March - April - May - June - July - August - September - October - November - December Deaths in May • 28 Gerald Anthony • 27 Umberto Agnelli • 22 Richard Biggs • 20 Len Murray • 17 Tony Randall • 17 Ezzedine Salim • 9 Alan King • 9 Akhmad Kadyrov • 8(?) Nick Berg • 7 Waldemar Milewicz Other recent deaths Ongoing...


Despite their support for NAFTA, the polls in Canada and Mexico have tended to show that citizens see their own country as the loser in NAFTA, and to see the United States as the winner. The U.S. public has viewed Mexico as the winner and has been narrowly divided about whether the United States is a winner or loser in NAFTA.[45]


Travel and migration

United States and Canada

Main article: Canada–United States border

Border restrictions were largely unaffected by the 1988 Free Trade Agreement, and NAFTA gave mobility rights to only listed professionals[46] (admittable to the USA under the TN status, or to Canada as "business people covered by NAFTA"[47]). Also, the border has been tightened in response to concerns about drugs and then terrorism. This freedom of mobility has had important qualifications, however. It can be suspended or terminated by either government at will. The Peace Arch border between Surrey, British Columbia and Blaine, Washington Canada and the United States of America share the longest common border in the world. ... TN (Trade NAFTA) status is a special United States immigration status unique to citizens of Canada and Mexico. ... Retail selling Street selling is the bottom of the chain and can be accomplished through purchasing from prostitutes, through cloaked retail stores or refuse houses for users in the act located in red-light districts which often also deal in paraphernalia, dealers marketing merriment at night clubs and other events... Terrorist redirects here. ...


Mexico and the United States

Main article: United States–Mexico border

In 2000, then-Mexican President Vicente Fox advocated the idea of free flow of people across the U.S.-Mexico border as a second phase of NAFTA, which would be completed in ten years. However, negotiations ceased after the 9/11 attacks, when debate in the United States shifted towards an immigration policy with security as its main goal. The border between Mexico and the United States spans four U.S. states, six Mexican states, and has over twenty commercial crossings. ... The President of the United Mexican States is the head of state of Mexico. ... Vicente Fox Quesada (born July 2, 1942) was the President of Mexico from 2000 to 2006. ... The date that commonly refers to the attacks on United States citizens on September 11, 2001 (see the September 11, 2001 Attacks). ... An immigration policy is any policy of a state that affects the transit of persons across its borders, but especially those that intend to work and to remain in the country. ...


Developments in early 2006 brought the Mexican-U.S. border and United States immigration debate to the center stage in American politics. The Secure Fence Act of 2006 provided for 700 miles of high security fence, to be built in regions of the border subject to high rates of illegal crossings. To this date only seven miles of fence have been built[citation needed], with the U.S. Congress wavering on its decision. The Comprehensive Immigration Reform Act of 2007 would have granted illegal immigrants already in the country a way forward to stay and gain citizenship. It would also have provided up to 200,000 placements per year for guest workers. On June 28, 2007, the bill failed cloture in the Senate, largely due to public outcry, and no further action was taken. In 2004, United States President George W. Bush proposed a guest worker program to absorb migrant laborers who would otherwise come to the U.S. as illegal aliens. ... President George W. Bush signs the Secure Fence Act of 2006, in the Roosevelt Room on October 26, 2006. ... The Comprehensive Immigration Reform Act of 2007, or, in its full name, the Secure Borders, Economic Opportunity and Immigration Reform Act of 2007 (S. 1348) was a bill discussed in the 110th United States Congress that would have provided legal status and a path to legal citizenship for the approximately... Illegal immigration is the act of moving to or settling in another country or region, temporarily or permanently, in violation of the law or without documents permitting an immigrant to settle in that country. ... is the 179th day of the year (180th in leap years) in the Gregorian calendar. ... Year 2007 (MMVII) is the current year, a common year starting on Monday of the Gregorian calendar and the AD/CE era in the 21st century. ... In parliamentary procedure, cloture (pr: KLO-cher) (also called closure, and sometimes a guillotine) is a motion or process aimed at bringing debate to a quick end. ...


The Open Skies Policy is intended to be applied by both of the governments once the Mexican air-transportation industry has been stabilized and Mexico's largest airlines AeroMexico and Mexicana consider themselves able to compete with airlines the size of American Airlines, Continental Airlines and United Airlines. The Open Skies system is an integrated web-enabled reservation and inventory system suite that includes Internet, call center, airport departure control functionality and more. ... Mexican may have several meanings. ... Aerom xico, is one of Mexicos two major airline companies. ... Mexicana de Aviación (commonly known by the shorter name Mexicana) is Mexicos second largest airline company, after Aeroméxico, and the worlds third oldest airline still using its original name, after Hollands KLM and Colombias Avianca. ... American Airlines, Inc. ... Continental Airlines (NYSE: CAL) is a U.S. certificated air carrier. ... United Airlines is a major airline of the United States. ...


See also

References

  1. ^ Reforming the North American Development Bank (NADBank) and the Border Environment Cooperation Commission (BECC)
  2. ^ The Caribbean Community
  3. ^ CARICOM AND NAFTA
  4. ^ The 1994 Communique of the CARICOM Heads of Government on NAFTA entry
  5. ^ CNN Larry King Live - Interview with Vicente Fox, CNN, October 8, 2007
  6. ^ House Roll Call
  7. ^ Senate Roll Call
    Krauss, Clifford. "In finagling on trade pact, legislators' barter is votes", The New York Times, October 5, 1993, p. B10. 
    Garrett, Major. "After emotionless debate, Senate votes for NAFTA" (paid archive), The Washington Times, November 21, 1993, p. A6. 
  8. ^ Lederman D, W Maloney and L Servén (2005) Lessons from NAFTA for Latin America and the Caribbean: Stanford University Press: Palo Alto, USA
  9. ^ Weintraub S (2004), NAFTA's Impact on North America The First Decade, CSIS Press: Washington, USA
  10. ^ Hufbauer GC and Schott, JJ, NAFTA Revisited, Institute for International Economics, Washington D.C. 2005
  11. ^ http://www.cato.org/pubs/journal/cj17n3-14.html
  12. ^ Floudas, Demetrius Andreas & Rojas, Luis Fernando; "Some Thoughts on NAFTA and Trade Integration in the American Continent", 52 (2000) International Problems 371
  13. ^ Greening the Americas, Carolyn L. Deere (editor). MIT Press, Cambridge, Massachusetts, USA
  14. ^ NAFTA, Corn, and Mexico’s Agricultural Trade LiberalizationPDF (152 KiB) p. 4
  15. ^ U.S.-Mexico Corn Trade During the NAFTA Era: New Twists to an Old Story USDA Economic Research Service
  16. ^ DHS Yearbook 2006. Supplemental Table 1: Nonimmigrant Admissions (I-94 Only) by Class of Admission and Country of Citizenship: Fiscal Year 2006
  17. ^ [http://www.cic.gc.ca/english/resources/statistics/facts2006/temporary/04.asp Facts and Figures 2006 Immigration Overview: Temporary Residents] (Citizenship and Immigration Canada)
  18. ^ [1]
  19. ^ Notice of ArbitrationPDF (1.71 MiB), 'Ethyl Corporation vs. Government of Canada'
  20. ^ Link is inactive, needs replaced with proper reference since January 2007PDF[dead link]
  21. ^ Dispute Settlement
  22. ^ U.S., Canada Reach Final Agreement on Lumber Dispute
  23. ^ softwood Lumber
  24. ^ Statement from USTR Spokesperson Neena Moorjani Regarding the NAFTA Extraordinary Challenge Committee decision in Softwood Lumber
  25. ^ 'Tembec, Inc vs. United States'PDF (196 KiB)
  26. ^ Statement by USTR Spokesman Stephen Norton Regarding CIT Lumber Ruling
  27. ^ NAFTA Trust Claims
  28. ^ U.S. Bureau of Labor Statistics.
  29. ^ U.S. Bureau of Labor Statistics.
  30. ^ Oxfam (2003). "Dumping without Borders: How U.S. Agricultural Policies Are Destroying the Livelihoods of Mexican Corn Farmers" (pdf). Oxfam. Retrieved on 2007-03-12.
  31. ^ Fiess, Norbert; Daniel Lederman (2004-11-24). "Mexican Corn: The Effects of NAFTA". Trade Note 18. The World Bank Group. Retrieved on 2007-03-12.
  32. ^ NAFTA, Chapter 11
  33. ^ http://www.gutenberg.org/dirs/etext93/naftchap.txt
  34. ^ 'North American Free Trade Agreement (NAFTA)', Public Citizen
  35. ^ Red Mexicana de Accion Frente al Libre Comercio. NAFTA and the Mexican Environment. Archived from the original on 2006-05-21.
  36. ^ The Council of Canadians
  37. ^ Judge Rebuffs Challenge to NAFTA'S Chapter 11 Investor Claims Process
  38. ^ Arbitration reward between Methanex Corporation and United States of AmericaPDF (1.45 MiB)
  39. ^ Arbitration reward between Metalclad Corporation and The United Mexican StatesPDF (120 KiB)
  40. ^ Gantz, D.A. 1999. “Dispute Settlement Under the NAFTA and the WTO:Choice of Forum Opportunities and Risks for the NAFTA Parties.” American University International Law Review 14(4):1025–1106.
  41. ^ de Mestral, A. 2005. “NAFTA Dispute Settlement: Creative Experiment or Confusion.” Unpublished manuscript, McGill University, Montreal, QC .
  42. ^ What the Public Really Wants on Globalization and Trade
  43. ^ Democrats on NAFTA
  44. ^ http://www.ipsos-na.com/news/pressrelease.cfm?id=2224
  45. ^ In Mexico, U.S. and Canada, Public Support for NAFTA Surprisingly Strong, Given each Country Sees Grass as Greener on the Other Side
  46. ^ Appendix 1603.D.1 of NAFTA
  47. ^ Working temporarily in Canada: Special categories—Business people

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External links

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  Results from FactBites:
 
North American Free Trade Agreement - Wikipedia, the free encyclopedia (2781 words)
The North American Free Trade Agreement is a free trade agreement among Canada, the United States, and Mexico.
This agreement was an expansion of the earlier Canada-U.S. Free Trade Agreement of 1989.
NAFTA has been accompanied by a dramatic increase of illegal immigration from Mexico to the United States; A huge fraction of these people are farmers forced off their land by bankruptcy in response of the disproportionate agreement in favor of the USA and Canada, leaving Mexico’s main exports sinking year after year.
  More results at FactBites »

 
 

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