W5P1 (article): NAFTA and the USMCA Flashcards
What is NAFTA?
The North American Free Trade Agreement, a trade deal between Canada, Mexico, and the United States.
When was NAFTA first signed and by which US President?
A) In 2000 by Republican President Bush.
B) In 1998 by Democratic President Clinton.
C) In 1992 by Democratic President Clinton.
D) In 1990 by Republican President Bush.
C) In 1992 by Democratic President Clinton.
When did NAFTA enter into force?
A) December, 1993
B) May, 1994
C) January, 1994
D) December, 1994
C) January, 1994
Based on the “NAFTA and the USCMA” article, which is NOT the purpose of NAFTA?
A) Eliminating most tariffs on products traded between three countries
B) Focusing in liberalizing trade in agriculture, textiles, and automobile manufacturing
C) Promoting uniform economic policies and currency integration across the member countries.
D) Protecting intellectual property, establishing dispute resolution mechanisms, and implementing labor and environmental safeguards
C) Promoting uniform economic policies and currency integration across the member countries.
What were the main goals of NAFTA?
To eliminate tariffs, liberalization of trade in agriculture and manufacturing, protect intellectual property, and impose labor and environmental safeguards.
What was the economic impact of NAFTA on trade between the three countries?
Trade tripled among the three countries (Canada, Mexico, USA) with significant growth in cross-border investment.
What did Trump renegotiate NAFTA to be?
Trump renegotiated it into the USMCA.
How did President Trump view NAFTA?
He criticized it as the “worst trade deal ever made”.
What was the USMCA?
The U.S.-Mexico-Canada Agreement. An updated version of NAFTA that took effect on July 1, 2020.
What was one of the main benefits of NAFTA according to its supporters?
It created approximately 200,000 export-related jobs annually, which often paid more than jobs lost.
What is NOT the goal of NAFTA?
A) Stronger and steadier economic growth to Mexico to discourage illegal migration
B) Ensuring that all member countries adopt identical labor and environmental laws.
C) Integration of Mexico with the developed, high wage economies of the U.S. and Canada
D) Lower-cost investment to enhance the competitiveness of U.S and Canadian companies
B) Ensuring that all member countries adopt identical labor and environmental laws.
One major criticism of NAFTA in relation to Mexican farmers was:
A) It led to Mexican farmers benefiting from high global prices
B) It caused Mexican farmers to lose jobs due to increased competition
C) It resulted in better infrastructure for Mexican agriculture
D) It isolated Mexican farmers from global markets
B) It caused Mexican farmers to lose jobs due to increased competition
NAFTA’s impact on Mexican wages and employment was mainly characterized by:
A) A significant rise in wages and reduced unemployment
B) An increase in high-paying jobs in rural areas
C) Job creation in automobile and manufacturing sector, but wages did not significantly rise, and unemployment persisted in agriculture sector
D) Equal wage growth across Mexico, the U.S., and Canada
C) Job creation in automobile and manufacturing sector, but wages did not significantly rise, and unemployment persisted in agriculture sector
True or False The U.S. auto sector lost about 350,000 jobs, while the Mexican auto sector gained jobs.
True
What was one of the unintended consequences of NAFTA mentioned in the document?
A) It created excessive reliance on oil exports from Mexico
B) It led to a rise in illegal migration to the U.S.
C) It reduced the economic dependency between the U.S. and Mexico
D) It strengthened the agricultural output of Mexico
B) It led to a rise in illegal migration to the U.S.
