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Word Document - Reflection Questions Regarding my Research

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Word Document - Reflection Questions Regarding my Research

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In this word document, I answer some questions about my experiences regarding the research I have done on NAFTA

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Assignment 2 - Questions Regarding Research.docx

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Web Article #3 - The Importance of Trade Relations Between Canada and Mexico

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Web Article #3 - The Importance of Trade Relations Between Canada and Mexico

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This web article goes into detail regarding the strong relationship both Canada and Mexico hold regarding NAFTA, and why a strong relationship between the two countries is important. Although NAFTA is only 24 years old, trade relations between Canada and Mexico go as far back as 73 years ago. In the first 23 years regarding NAFTA, Mexico had increased its imports from Canada from $1.2 billion - $9.6 billion.

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Canada and Mexico are going through one of the best moments of our relationship. The ties that link us, as well as the values and principles we share, make it stronger every day. This year, we celebrate 73 years of diplomatic relations, and we are witnessing a historical moment characterized by both countries' political willingness to further strengthen our ties and deepen our strategic dialogue under a renewed perspective. The current regional context demands a revitalization of the co-operation that already exists between our countries.

Prime Minister Justin Trudeau's first visit to Mexico on Oct. 12-13 confirms the close friendship between our people and governments. Over the past years, we have undertaken three main efforts to consolidate our bilateral relationship: Capitalize and continue strengthening our shared values and institutionalized co-operation mechanisms; achieve a more articulated mobility between our societies; and increase bilateral trade.
Explainer: What's on Trudeau's agenda in Mexico, and what's at stake for NAFTA? A guide
Firstly, since Prime Minister Trudeau's election, I have shared with him my commitment to the promotion of common values, such as democracy, free trade, human rights, gender equality and environmental protection.

The bilateral relationship between Mexico and Canada lays upon mechanisms to deepen our dialogue at the highest level. Last year, in October, we celebrated the first meeting of the High-Level Strategic Dialogue, which guides our efforts to implement a common agenda. We have also reinforced co-operation regarding the economic empowerment of women in both countries.

So far, we have supported each other in the most pressing times. After the fires that ravaged British Columbia, 360 Mexican wildfire technicians and firefighters were sent to the province, while Canada provided aid in the aftermath of the recent earthquakes in Mexico, for which we are grateful.

Second, as we have grown closer economically, our cultural and social ties have also intensified. More than 96,000 people of Mexican origin live in Canada, and more than 60,000 Canadians live in Mexico, contributing to the economy, society and culture of both countries.

Mexico and Canada celebrate the positive results of last December's visa removal for Mexican visitors. The number of Mexicans travelling to Canada has increased significantly. In 2016, more than 250,000 Mexicans visited Canada; in just the first seven months of 2017, this number is already more than 228,000, with record levels in July.

Another example of increased bilateral mobility is the Seasonal Agricultural Workers Program. Since it began in 1974, it has become a symbol of our bilateral relationship and a model for international co-operation to maintain orderly, legal and safe migratory flows between our countries. Last year, close to 24,000 Mexican workers participated in the program.

Regarding academic exchanges, Mexico is committed to continuing investing more in education, innovation, and research to foster competitiveness and prosperity in North America. Through the Bilateral Forum on Higher Education, Innovation and Research with Canada (FOBESIIC) and Proyecta 10,000, Mexico's Ministry of Education granted 460 scholarships for students to take a four-week intensive English-language course in Canada.

Third, our governments support the promotion of shared prosperity and increased regional competitiveness. Through the North American free-trade agreement, our region has become increasingly integrated and more competitive. Today, the social, economic and commercial ties within the region are stronger than ever.

After more than 20 years, both countries have enjoyed significant economic and social gains from NAFTA. Mexican imports from Canada increased from $1.2-billion to $9.6-billion between 1993 and 2016. Furthermore, Canada is our fourth trade partner and the fourth source of foreign direct investment in our country.

The government of Mexico will keep working constructively with Canada to further strengthen our relations, achieve mutual benefits and contribute to reaching our shared goal: to make North America the most prosperous and competitive region in the world.

I am confident that the continuing dialogue with Prime Minister Trudeau will undoubtedly enhance our collaboration with the Canadian government to advance our shared objectives, while ensuring that our bilateral relationship continues to be at its best, with a broader agenda than ever. I am convinced that this vital junction for Canada-Mexico relations will translate into more and better opportunities for our countries.

Finally, on behalf of the Mexican people, I extend our warmest and most sincere congratulations for the 150th anniversary of Canada's Confederation.

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Let's keep our Mexico-Canada relationship strong

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Canada and Mexico are going through one of the best moments of our relationship. The ties that link us, as well as the values and principles we share, make it stronger every day.

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Web Article #2 - Some recent News regarding Trade relations between Canada and the U.S., and Mexico

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Web Article #2 - Some recent News regarding Trade relations between Canada and the U.S., and Mexico

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The following news article goes into detail on the recent tensions between the negotiations regarding the NAFTA countries, and how things are beginning to come together for the future of NAFTA. Though U.S. President Donald Trump believes that NAFTA is responsible for a loss in US jobs, I believe that NAFTA is important because it accounts for most of the trade between Canada, the US, and Mexico. Sending jobs to other countries is how the things we buy today can be imported and sold at such cheap prices.
Source: https://globalnews.ca/news/4150126/nafta-negotiations-washington-trade-talks/

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The top U.S., Canadian and Mexican officials driving NAFTA renegotiations will meet in Washington on Thursday, a Canadian government source said on Tuesday, as pressure for a quick deal mounts.

Although the United States is keen to quickly wrap up negotiations to update the $1.2 trillion North American Free Trade Agreement, officials say several contentious issues must still be resolved.

READ MORE: U.S. officials make optimistic noises about NAFTA, say deal could be reached in weeks

U.S. Trade Representative Robert Lighthizer wants some kind of agreement in place before campaigning for a July 1 presidential election in Mexico gathers pace.

Lighthizer, Canadian Foreign Minister Chrystia Freeland and Mexican Economy Minister Ildefonso Guajardo last met on April 6.

Guajardo said on Monday the three officials might gather again this Thursday in Washington, and the Canadian government source confirmed the meeting would go ahead.

"It's a continuation of the conversation they started on two weeks ago," said the source, describing recent exchanges between the three nations as very productive.

Guajardo and others have said a NAFTA deal could be possible by early May, but significant differences remain on U.S. proposals to revise content rules for the automotive sector and to change dispute resolution mechanisms as well as other issues.

"I wouldn't be expecting an announcement out of this meeting (on Thursday)," added the source, who requested anonymity given the sensitivity of the situation.

U.S. President Donald Trump, who blames NAFTA for job losses in the American manufacturing sector, regularly threatens to walk away from the pact unless major changes are made.

READ MORE: Mexico says new NAFTA deal could be reached by early May: 'We're weeks away'

Moises Kalach, head of the international negotiating arm of the CCE business lobby, which represents the Mexican private sector at the talks, said the three teams were working "night and day" to get a deal on the new auto sector rules.

For the three nations to agree a new NAFTA, the U.S. team would need to show more flexibility, he said. So far, Trump had not changed his attitude on the toughest issues, he added.

"The Mexican government, and more so the Mexican private sector can't agree to a bad deal because it won't pass Mexico's congress or the U.S. congress," he said in an interview.

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NAFTA talks to continue Thursday in Washington as trade tensions simmer

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The top U.S., Canadian and Mexican officials driving NAFTA renegotiations will meet in Washington on Thursday, a Canadian government source said on Tuesday, as pressure for a quick deal mounts. Although the United States is keen to quickly wrap up negotiations to update the $1.2 trillion North American Free Trade Agreement, officials say several contentious issues must still be resolved.

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The image below shows the 3 involved countries flag's in the form of people grouping together in a friendly manner. This image symbolizes the relationship between the US, Mexico, and Canada.
Source: http://pnglc.com/nafta-certificate-of-origin/

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Video #3 - How NAFTA has affected Canada-U.S. trade

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Video #3 - How NAFTA has affected Canada-U.S. trade

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The video below is a short excerpt by Fox Business talking about the relationship between Canada and the United States. What I like the most about this video is that despite US president Donald Trump isn't necessarily a fan of NAFTA, he still wishes to have strong trade relations between Canada and the United States.
(This video runs for 6 minutes and 25 seconds).

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How NAFTA has affected Canada-U.S. trade

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Web Article #1 - Some more in-depth information on what NAFTA is.

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Web Article #1 - Some more in-depth information on what NAFTA is.

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The webpage located below goes into some more depth on exactly what NAFTA is, and its importance to the three countries involved. What I found most interesting regarding this web page was that the negotiations for NAFTA went on for 14 months!
Source: http://www.thecanadianencyclopedia.ca/en/article/north-american-free-trade-agreement-nafta/

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​The North American Free Trade Agreement (NAFTA) is an economic pact between Canada, the United States and Mexico. Designed to eliminate all trade and investment barriers between the three countries, the agreement came into force on 1 January 1994. In addition to being one of the most ambitious trade agreements in history, NAFTA also created the world's largest free trade area. It brought together two wealthy developed countries (Canada and the United States) with a less developed state (Mexico). The agreement built on the earlier Canada-US Free Trade Agreement (CUSFTA), which came into effect on 1 January 1989. After NAFTA was signed, trade and investment relations between the three countries expanded rapidly, but political co-operation remained weak. NAFTA continues to be controversial, particularly in the United States. Recently elected US president Donald Trump has threatened to renegotiate or cancel the deal.

Why Was NAFTA Created?

A number of political and economic factors over the course of the 1980s and into the 1990s led to the creation of NAFTA. The idea of a North American free trade area was raised by Ronald Reagan in November 1979 when he announced his candidacy for the presidency. Both Canada (under Prime Minister Pierre Trudeau) and Mexico (led by President José López Portillo) were deeply wary of US dominance and showed no interest in such a deal. However, in 1984, a change of government in Canada with the election of Progressive Conservative prime minister Brian Mulroney led to the negotiation of the CUSFTA. In Canada, there was strong opposition to the CUSFTA within the Liberal and New Democratic parties and among the general public. In the United States, however, opposition from labour groups and the population at large was limited.

The move to bring in Mexico to create a North American free trade area was much more controversial. In 1981-82, Mexico experienced a debt crisis, during which time the country's foreign debt exceeded their ability to pay it back. Following the crisis, leaders from Mexico's dominant party, the Institutional Revolutionary Party (PRI), began to seek alternatives to the country's nationalist economic model, adopted following the revolution of 1910-20. With pressure from the International Monetary Fund and World Bank, Mexican politicians began to open up their economy, and joined the General Agreement on Tariffs and Trade (GATT) - an international trade agreement originally signed in 1947 - in 1986. However, international investors were still skeptical about the stability of the Mexican economy and its long-term commitment to liberal economic policies. PRI president Carlos Salinas de Gortari, who came to power in 1988 in an election that was widely viewed as fraudulent, travelled to Europe in 1990 to deliver the message that Mexico had changed. However, European states and investors showed little interest in the Mexican market.

In response, Salinas, with his closest advisors, decided to approach US president George H.W. Bush to formally propose a free trade agreement with the United States. Salinas hoped not only to attract new investment but to legitimize his party's rule, which had been undermined by the economic crisis and the events of the 1988 election. The proposed deal complemented the trade objectives of the Bush administration. Trade talks in the GATT had stalled, and European countries were increasingly trading amongst themselves and therefore less interested in trade with the United States. Therefore, a deal with Mexico (and Canada) was seen as a way of advancing US objectives for deeper levels of liberalization. Economist Paul Krugman argued that the US interest in the deal was as much political as it was economic, since the United States had an interest in shoring up the power of the ruling party in Mexico to prevent political instability on its southern border.

Canada was not initially part of the talks, but the Mulroney government eventually chose to join. The Canadian government and business leaders were somewhat reluctant to share their preferential access to the huge US market with Mexico and had little interest in the Mexican market because of the low level of Canada-Mexico trade. However, the Mulroney government eventually decided that it was better to be part of the negotiations and shape the outcome rather than face a deal between the United States and Mexico that might divert trade and investment away from Canada.

The Mexican leaders were told in no uncertain terms by the United States that their desire for free movement of labour within the North American region would not be permitted on the bargaining table. On the other hand, Mexico was able to resist US pressure to allow access to its oil resources in times of scarcity, an issue that Canada had bargained away in the Canada-US agreement. Canada continued to demand an exemption for its cultural industries from the terms of the agreement as it had in the CUSFTA, to permit the government to continue to support businesses such as music, film and television through measures like content quotas and subsidies.After 14 intense months of negotiation between 1991 and 1992, the NAFTA agreement was signed by Bush, Salinas and Mulroney.

Before it could come into effect, the deal needed to be ratified. Shortly after the agreement was signed, Democrat Bill Clinton took office as president of the United States. Responding to pressures from supporters of his party, Clinton successfully pushed for the creation of two side accords, designed to protect the environment and labour rights, in order to push the deal through. These were separate agreements that required the three countries to enforce their own domestic legislation on these matters. Liberal prime minister Jean Chrétien, elected in 1993 on a platform that called for the renegotiation of NAFTA, backed down on his demands when Clinton refused to reopen talks. NAFTA was ratified by the legislatures in the three countries in 1993.

Critics in the United States and Canada argued that the negotiations were dominated by corporate interests, and that NAFTA would result in poor working conditions and low environmental standards as the three governments would compete for investment by lowering standards. Similarly, many feared losing high-paying manufacturing jobs in Canada and the United States to Mexico. By comparison, response among the Mexican general public was limited, partly because many were disillusioned with the economic nationalist model that contributed to the debt crisis of the early 1980s. As well, the country was still ruled by a semi-authoritarian regime and the public had little access to independent information.

Content

The agreement was designed to reduce or eliminate trade and investment barriers between the three member states. Like the CUSFTA, NAFTA grants signatories "most-favoured nation" treatment, meaning each country can access the others' markets without barriers such as high tariffs.

The objectives of the deal were laid out in the first chapter. These are to:

a) eliminate barriers to trade in, and facilitate the cross-border movement of, goods and services between the territories of the Parties;

b) promote conditions of fair competition in the free trade area;

c) increase substantially investment opportunities in the territories of the Parties;

d) provide adequate and effective protection and enforcement of intellectual property rights in each Party's territory;

e) create effective procedures for the implementation and application of this Agreement, for its joint administration and for the resolution of disputes; and

f) establish a framework for further trilateral, regional and multilateral cooperation to expand and enhance the benefits of this Agreement.

Canada and the United States had already lowered their tariffs dramatically, so the main impact of NAFTA's removal of trade barriers was on Mexico. The final agreement included many elements of CUSFTA but extended that agreement in several key areas. For example, in the automobile sector, CUSFTA required that 50 per cent of a car's parts be made in North America to qualify it for duty-free trade. Under NAFTA, that figure was increased to 62.5 per cent.

But perhaps the most important new element of NAFTA was the inclusion of an investor-state mechanism in chapter 11. Investor-state agreements permit a company in one country to take another member country to international arbitration based on the allegation that they're treating that company unfairly. In addition, the labour and environmental side accords represented a significant innovation, requiring that each partner respect its own laws. However, since they were located outside the main text of the agreement, they lacked effective enforcement mechanisms.

Unlike the European Union that came after it, NAFTA did not contain or promote political integration or moves toward supranational institutions like the European Parliament. NAFTA also became the model for most subsequent trade agreements pursued by the three partners with other countries.

NAFTA's Impact

It is difficult to objectively evaluate the impact of NAFTA on the economies of the three countries and to distinguish between the impact of the trade agreement and other sources of economic change, such as globalization, the impact of China's entry into the World Trade Organization, technological change and domestic political decisions of the respective countries. Discussion of NAFTA's impact is highly polarized. Most federal government representatives from the three countries praise it as having a highly beneficial impact. Global Affairs Canada states that "since 1994, NAFTA has generated economic growth and rising standards of living for the people of all three member countries. By strengthening the rules and procedures governing trade and investment throughout the continent, NAFTA has proven to be a solid foundation for building Canada's future prosperity."

Total merchandise trade between the three NAFTA partners has more than tripled between 1993 and 2015, amounting to over US$1 trillion. Combined with the CUSFTA, NAFTA has had a major impact on the Canadian economy. In 2015, 78 per cent of Canada's total exports were sent to its NAFTA partners. Total merchandise trade between Canada and the United States more than doubled between 1993 and 2015, while trade with Mexico (starting from a much lower level) increased eightfold over the same period.

One of the most important economic effects of the trade agreement was the establishment of regional supply chains. Much of the increase in inter-regional trade is the result of decisions by producers to reorganize manufacturing and assembly plants to carry out different parts of the production process in the site deemed most efficient. Many economic sectors, especially automobiles, have become extremely integrated across the North American region.

Criticisms

While most would agree that NAFTA has led to higher levels of trade and investment, critics argue that these changes have not resulted in improved standards of living in any of the three countries. Many see the results of NAFTA as especially disappointing for Mexico. Mexican rates of economic growth over the past 25 years have been relatively low, while inequality and poverty remain high. Some argue that Mexico would have benefited more if NAFTA had been accompanied by stronger domestic policies aimed at improving education and social well-being, as well as greater investment in infrastructure and regional development. Agriculture is a sector that has been identified as particularly problematic. Many critics say that millions of Mexican peasants lost their land as a result of the Mexican government's decision to remove tariffs on corn, Mexico's staple food, as well as protections for the communal system of land ownership that had delivered land to millions of poor and Indigenous peasants after the Mexican revolution. Meanwhile, the United States continued to subsidize the production of corn, meaning poor Mexican producers could not compete with cheap imports. The harsh impact of liberalization on millions of Mexicans fueled the rapid increase in Mexican migration to the United States after NAFTA was implemented, even though the government ofCarlos Salinas de Gortari had claimed that NAFTA would reduce migration by creating jobs in Mexico.

Chapter 11 on investment, which includes the investor-state mechanism, is also frequently subject to criticism. As of 2015, Canada has been the target of the most suits under this provision of the agreement, with a total of 35 claims brought against Canada between 1995 and 2015, comprising 45 per cent of the total claims that have been made. Canada has paid out more than $170 million in damages after having lost or settled six cases. Mexico has lost five cases, resulting in payments of more than US$204 million. The US, on the other hand, has never lost a NAFTA investor-state case. As of 2015, nine cases that have been brought against Canada remained undecided, with claims representing more than $6 billion in damages. A majority of the cases brought against Canada have challenged government policies aimed at protecting the environment or managing resources - policies that allegedly interfere with foreign investors' profits. Critics claim that chapter 11 unacceptably infringes on Canadian sovereignty and threatens the Canadian state's capacity to protect the environment, because the chapter has been used numerous times to challenge environmental legislation that may have a negative impact on the business of foreign investors.

After NAFTA

The fact that NAFTA did not create significant institutions meant there was little opportunity for co-operation between the three countries after the agreement was signed. A NAFTA office is housed in each country and trinational working groups were established, but in practice they have had little relevance. The main site for promoting co-operation among the three countries is the North American Leaders' Summit (NALS) - sometimes referred to as the Three Amigos Summit - which is normally held every year but which has been cancelled several times.

The terrorist attacks of 11 September 2001 on the United States led to a new form of co-operation, motivated primarily by US security concerns. The US government responded to the attacks by temporarily implementing anti-terrorism measures at its two land borders, involving the individual inspection of virtually all vehicles by border agents. Cross-border trade, which had multiplied after the CUSFTA and NAFTA, was immediately threatened as 16-hour wait times were reported at major border crossings into Canada. The Canadian government moved rapidly to restore trade by promoting a 30-point US-Canada Smart Border Accord, signed by the two countries in December 2001. Shortly afterwards, in March 2002, a similar but more limited Border Partnership Action Plan was signed between the United States and Mexico. Cross-border movement of goods and people remained constrained, however, by the anti-terrorist measures undertaken by the US government. In 2005, the three governments created the Security and Prosperity Partnership of North America (SPP) to deepen regional integration on the basis of broad-based regulatory harmonization. President Obama cancelled the SPP in 2009, however, partly because of growing criticism of the process for being non-transparent and lacking democratic accountability.

The cancellation of the SPP again left the NALS as the only opportunity for high-level consultation and coordination. Tensions between the three states were sometimes clear at the NALS meeting. At the 2014 summit in Toluca, Mexico, Prime Minister Stephen Harper and Mexican president Enrique Peña Nieto clashed over the Canadian government's 2009 decision to impose a visa requirement on Mexicans visiting Canada. Harper cancelled the 2015 summit, which was supposed to take place in Canada, because of continued conflict with Mexico over the visa and growing tensions with the United States over Obama's failure to approve the Keystone XL pipeline. Peña Nieto and Obama met with the new Canadian prime minister Justin Trudeau at the 2016 summit in Ottawa, where the relationship appeared to be reset, particularly because Trudeau promised to lift the visa requirement on Mexico.

NAFTA and Donald Trump

Prospects for improved co-operation have been quashed by the November 2016 election of President Donald Trump. This is not the first time that NAFTA faced serious opposition in US presidential races. In 1992, independent candidate Ross Perot campaigned on an anti-NAFTA platform, stating that the agreement would create a "giant sucking sound" of jobs moving to Mexico. In 2008, Barack Obama promised to amend or back out of the agreement but ignored this pledge when he came to power. Donald Trump's opposition to the agreement is particularly bitter, however, with rhetoric especially focused on Mexico, which he claims is benefiting at the expense of the United States.

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North American Free Trade Agreement (NAFTA)

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​The North American Free Trade Agreement (NAFTA) is an economic pact between Canada, the United States and Mexico. Designed to eliminate all trade and investment barriers between the three countries, the agreement came into force on 1 January 1994. In addition to being one of the most ambitious trade agreements in history, NAFTA also created the world's largest free trade area.

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The image below contains information regards to trade between Canada, USA, and Mexico.
What I found most interesting about this image was that Mexico is Canada's fifth leading trade partner, even though it is part of NAFTA.
Source: https://www.bdo.com/insights/industries/private-equity/nafta-border-tax-the-opportunities-for-private-e

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The image below contains the logo of the North American Free Trade Agreement (NAFTA). It is a flag that is a collaboration of the flags from the three countries that are a part of the trade agreement. (Left to right: USA, Mexico, Canada). Source: Wikipedia

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Video #2 - 10 Interesting Facts about NAFTA

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Video #2 - 10 Interesting Facts about NAFTA

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Watch Mojo has the goods for you in this video! The following video contains 10 interesting facts for anyone doing research, or just wants to learn more about NAFTA would want to know. One of the facts that I found particularly interesting was although it was established in 1994, talks of NAFTA extend back to 1979.
(This video runs for 10 minutes and 15 seconds).
https://www.youtube.com/watch?v=_blj_fUQOI8

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Top 10 NAFTA Facts You Should Know // Subscribe: http://goo.gl/Q2kKrD // TIMESTAMPS BELOW Be sure to visit our Suggest Tool and Submit Ideas that you would like to see made into Top 10 videos! http://www.WatchMojo.com/Suggest What is NAFTA? The North American Free Trade Agreement went into effect in 1994 as an agreement between the United States, Canada and Mexico.

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Video #1 - So what exactly is NAFTA anyway? (Watch First)

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Video #1 - So what exactly is NAFTA anyway? (Watch First)

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The North American Free Trade Agreement, or NAFTA, is a trade agreement that was made between the three North American countries (Canada, USA, and Mexico) established on January 1st 1994. In this video, Breanna Leininger of Pacific Customs breaks down what NAFTA is, as well as its purpose. This video contains information that would prove as useful for anyone who doesn't quite understand what NAFTA is.
(This video runs for 3 minutes and 34 seconds.)
https://www.youtube.com/watch?v=bIDZ9pW1NXg