Transcript NAFTA, WTO & MEXICO

EVOLUTION OF MEXICO’S
ECONOMY
A UNG, APPLE AND FELDBERG
PRODUCTION
Mexican - United States
Relations
 During the Cold War
period Mexico seemed
to almost always be
against the US.
 The United States has “a bigger fish to fry
elsewhere”.
 President Bush strengthened the MexicoUS relations together with President Fox.
 In 1999 Mexico became
the U.S. second most
important trading
partner following Canada.
 In 2001 Bush and Fox
establish “warm”
relationship.
 The United States holds more than
60%
of Mexico’s foreign investments.
 Under Fox, Mexico’s economy incr
eased
in 2004 by 4.4%.
Current Challenges Between
Mexico and the U.S.




Trade issues: NAFTA
Border Issues
Drug Traficant Issues
Political and
Human Rights
Issues
Neo-Liberalism
It is a label for economic
liberalism that describes
government policies aiming to
promote free competition
among businesses.
•It is based on individualism,
consumerism,
concentration of capital and
centralization of power.
Consider…
 Neo-liberalism
is based on individualism,
consumerism, concentration
of capital and centralization
Of power. Who is the
government representing?
*Hint: $$$$$
 Fact: “In 1997 the riches
t one-fifth of the world’s
population owned an
astounding 85% of the
world’s wealth.”
 Free trade zones an
d
Maquiladoras (factories
that produce for export)
under the Border
Industrialization Progra.
Consider
 In relation to jobs,
the relevant question is
not "Why aren't they
happy to have jobs?"
But rather "Why are
these only jobs available
?”
and "What are the
policies that created this
situation in the first place
?"
SAPs
The IMF assembled a "rescue"
package of loans accompanied
by
a large number of conditions,
called "conditionalities" or
Structural Adjustment Programs.
These conditions included
measures to open the economy
to
foreign corporations, eliminate
trade barriers, restrict access to
credit, and cut social spending.
What is NAFTA?


NAFTA(the North American
Free Trade Agreement) is an
agreement between Canada,
the US, and Mexico that took
effect on January 1, 1994,
designed to increase the
scope for the free flow trade
and investment among these
three countries.
It includes measures for the
elimination of tariffs and nontariff barriers to trade, as well
as many more specific
provisions concerning the
conduct of trade and
investment that reduce the
scope for government
intervention in managing trade.
The Desired Effect
The problems
 Agriculture & Rural Crisis
(Yellow Corn vs White Corn)
 No broad economical benefits
(the Peso Crash, 4$)
 The Ecological Impact
 Human Rights?
Mexico and the wto
 Agriculture
(Quantitative Restrictions)
 Biopiracy & GMO
(WTO or MEA?)
 Forests
 Tourism
Videos
http://www.youtube.com/watch?v=2ticH7r2rGw&mode=related&search=
http://www.youtube.com/watch?v=sBskbZ9Pl6A&NR
http://www.youtube.com/watch?v=QprVEErUGBw&mode=related&search=
http://www.youtube.com/watch?v=19px_rCVHMw&mode=related&search=
Thanks,
UNG, SIDRA and SHARON ©
☺