PART 1: OVERALL SUMMARY AND CONTEXT OF THE SITUATION

 

What is the
main issue(s) discussed in the article?

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In
this article we see that the main issue is that Canada and Mexico are not
siding with some of the demands that are being made from the United States
during the NAFTA trade negotiations. The Sixth round of talks is set to take
place in Montreal to reach a solution of whether the NAFTA agreement shall
continue or be terminated.

 

What is the general background of the situation and
why is this important and “newsworthy”?

            The NAFTA agreement was created in
the 1993 By George H.W Bush. And all three countries entered the agreement in
1994. The agreement was created to encourage trade between the three countries
involved in the trade also known as the “Charm Offensive”

 

Who are the main participants?

            The main participants that are
involved in the NAFTA negotiations are Canada, Mexico, and The United States Of
America.   

 

PART 2: GLOBAL IMPACT

 

What do the
main participants stand to gain or lose in this situation?

 

            The
NAFTA agreement has been a great success since it was implemented. It is said
that the trade of goods between 1993 and 2007 increased from $293 Billion to
$909 Billion. All three nations gain a competitive advantage over other nations
due to their increasing economy as the agreement has created 5 million  new jobs just in the U.S.  The economic growth in the U.S was said to
increase by 0.5 per year. Agriculture grew as agricultural exports to Canada,
and Mexico from the U.S increased to 156% which is a ridiculous percentage. The
foreign Direct Investment in Canada and Mexico has tripled. The risk of
Inflation decreases as the agreement lowered tariff prices, which directly
impacted import prices in a positive manner. Taking all this into consideration
all three nations stand to gain a lot from this agreement, and if this
agreement is terminated the charm offensive will see a drastic change within their
economy.

 

What is the
positive and negative impact to the people of these participating nations/parties?

            The people of
the participating nations are more prone to being impacted negatively rather in
a positive manner. If the NAFTA agreement is cancelled the tariff prices would
increase from being free to 3.5 in the U.S, 4.2 in Canada, 7.1 cents in Canada.
This would directly impact the percentage of Import, and export between the
three nations negatively. This agreement had created many jobs mainly in the
import and export industry of the three nations. Terminating the agreement
could potentially result in many companies downsizing, and an increase in lay-offs.
All these issues that may arise can potentially spark a recession within each
nation.

 

 

PART 3: YOUR ANALYSIS

Any other
relevant facts, opinions, or arguments that you would like to add to enhance
your analysis?

 

In your
opinion, how can the situation be resolved or improved?

 

 

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