you likely know the acronym but do you really understand what it means welcome
really understand what it means welcome
really understand what it means welcome to watchmojo.com and today we’re
to watchmojo.com and today we’re
to watchmojo.com and today we’re counting down our picks for the top 10
counting down our picks for the top 10
counting down our picks for the top 10 nafta facts before we begin we publish
nafta facts before we begin we publish
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content for this list we’re looking at
content for this list we’re looking at interesting details about the North
interesting details about the North
interesting details about the North American Free Trade Agreement or NAFTA
American Free Trade Agreement or NAFTA
American Free Trade Agreement or NAFTA to its friends and enemies number 10
to its friends and enemies number 10
to its friends and enemies number 10 NAFTA did not originate with Clinton I
NAFTA did not originate with Clinton I
NAFTA did not originate with Clinton I believe we had made a decision now that
believe we had made a decision now that
believe we had made a decision now that will permit us to create an economic
will permit us to create an economic
will permit us to create an economic order in the world that will promote
order in the world that will promote
order in the world that will promote more growth more equality nowadays many
more growth more equality nowadays many
more growth more equality nowadays many people talk as if President Bill Clinton
people talk as if President Bill Clinton
people talk as if President Bill Clinton single-handedly made NAFTA happen in
single-handedly made NAFTA happen in
single-handedly made NAFTA happen in reality though talk of a trade agreement
reality though talk of a trade agreement
reality though talk of a trade agreement between the three North American
between the three North American
between the three North American countries goes back to 1979 when Ronald
countries goes back to 1979 when Ronald
countries goes back to 1979 when Ronald Reagan announced his presidential
Reagan announced his presidential
Reagan announced his presidential candidacy it’s time we stop thinking of
candidacy it’s time we stop thinking of
candidacy it’s time we stop thinking of our nearest neighbors as foreigners
our nearest neighbors as foreigners
our nearest neighbors as foreigners after the signing of a 1988 free trade
after the signing of a 1988 free trade
after the signing of a 1988 free trade agreement between Canada and the US
agreement between Canada and the US
agreement between Canada and the US Canada made a concerted push for a
Canada made a concerted push for a
Canada made a concerted push for a trilateral agreement in 1991 George HW
trilateral agreement in 1991 George HW
trilateral agreement in 1991 George HW Bush actually signed the pact in 1992
Bush actually signed the pact in 1992
Bush actually signed the pact in 1992 but it was not approved by Congress
but it was not approved by Congress
but it was not approved by Congress until Bush left office Congress passed
until Bush left office Congress passed
until Bush left office Congress passed the agreement in late 1993 during
the agreement in late 1993 during
the agreement in late 1993 during Clinton’s first term after which it was
Clinton’s first term after which it was
Clinton’s first term after which it was signed into law and went into effect
signed into law and went into effect
signed into law and went into effect early the next year but only after two
early the next year but only after two
early the next year but only after two side agreements were put in place to
side agreements were put in place to
side agreements were put in place to help protect workers and the environment
help protect workers and the environment
help protect workers and the environment number nine several Canadian groups
number nine several Canadian groups
number nine several Canadian groups challenged part of it Canadians in
challenged part of it Canadians in
challenged part of it Canadians in particular didn’t really see why they
particular didn’t really see why they
particular didn’t really see why they ought to be trading with with Mexico or
ought to be trading with with Mexico or
ought to be trading with with Mexico or perhaps getting embedded in an economy
perhaps getting embedded in an economy
perhaps getting embedded in an economy where there wasn’t a lot of trades
where there wasn’t a lot of trades
where there wasn’t a lot of trades various sections of NAFTA have faced
various sections of NAFTA have faced
various sections of NAFTA have faced criticism but chapter 11 has proven
criticism but chapter 11 has proven
criticism but chapter 11 has proven particularly controversial this is the
particularly controversial this is the
particularly controversial this is the part which allows a person or a company
part which allows a person or a company
part which allows a person or a company to sue one of the Pact countries when it
to sue one of the Pact countries when it
to sue one of the Pact countries when it does something that restricts profits
does something that restricts profits
does something that restricts profits opponents of this chapter believe that
opponents of this chapter believe that
opponents of this chapter believe that such legal action can force a country to
such legal action can force a country to
such legal action can force a country to partake in environmentally or socially
partake in environmentally or socially
partake in environmentally or socially destructive practices well yeah the
destructive practices well yeah the
destructive practices well yeah the frustration is that this is the 82nd
frustration is that this is the 82nd
frustration is that this is the 82nd pipeline they want permission to build
pipeline they want permission to build
pipeline they want permission to build across the border any
across the border any
across the border any one of them bill without any problem the
one of them bill without any problem the
one of them bill without any problem the 82nd is now the problem Canada has borne
82nd is now the problem Canada has borne
82nd is now the problem Canada has borne the brunt of this with more than 70% of
the brunt of this with more than 70% of
the brunt of this with more than 70% of actions brought against that country on
actions brought against that country on
actions brought against that country on more than one occasion
more than one occasion
more than one occasion Canada has lost and been forced to go
Canada has lost and been forced to go
Canada has lost and been forced to go against their own environmental policies
against their own environmental policies
against their own environmental policies as a result various groups have long
as a result various groups have long
as a result various groups have long denounced chapter 11 as unconstitutional
denounced chapter 11 as unconstitutional
denounced chapter 11 as unconstitutional but to no avail number 8 Mexico imports
but to no avail number 8 Mexico imports
but to no avail number 8 Mexico imports a lot of us stuff as you know I mean
a lot of us stuff as you know I mean
a lot of us stuff as you know I mean basically Mexico is the second largest
basically Mexico is the second largest
basically Mexico is the second largest buyer of US commodities and
buyer of US commodities and
buyer of US commodities and manufacturing although many opponents of
manufacturing although many opponents of
manufacturing although many opponents of NAFTA talk about perceived US losses
NAFTA talk about perceived US losses
NAFTA talk about perceived US losses under the agreement one area where the
under the agreement one area where the
under the agreement one area where the US has gained is in its exports to the
US has gained is in its exports to the
US has gained is in its exports to the south according to a 2016 report Mexico
south according to a 2016 report Mexico
south according to a 2016 report Mexico imports more from the US than do the
imports more from the US than do the
imports more from the US than do the nations that make up the brick block
nations that make up the brick block
nations that make up the brick block that is to say Mexico alone is importing
that is to say Mexico alone is importing
that is to say Mexico alone is importing more from the US than Brazil Russia
more from the US than Brazil Russia
more from the US than Brazil Russia India and China put together and it’s
India and China put together and it’s
India and China put together and it’s across a wide range of products from
across a wide range of products from
across a wide range of products from agriculture to auto parts but turnabout
agriculture to auto parts but turnabout
agriculture to auto parts but turnabout is fair play the u.s. ends up as the
is fair play the u.s. ends up as the
is fair play the u.s. ends up as the target point for 80% of Mexico’s exports
target point for 80% of Mexico’s exports
target point for 80% of Mexico’s exports incentives out there for us to really
incentives out there for us to really
incentives out there for us to really set an objective of negotiation the
set an objective of negotiation the
set an objective of negotiation the latest by the end of 2017
latest by the end of 2017
latest by the end of 2017 number 7 nafta plays to a Canadian
number 7 nafta plays to a Canadian
number 7 nafta plays to a Canadian strength in jobs it might go without
strength in jobs it might go without
strength in jobs it might go without saying but international trade is a very
saying but international trade is a very
saying but international trade is a very important component of the Canadian
important component of the Canadian
important component of the Canadian economy in fact it’s estimated that
economy in fact it’s estimated that
economy in fact it’s estimated that about 20% of all Canadian jobs are
about 20% of all Canadian jobs are
about 20% of all Canadian jobs are involved in or related to trade with
involved in or related to trade with
involved in or related to trade with other countries remember the nature of
other countries remember the nature of
other countries remember the nature of our economy is changing a little bit
our economy is changing a little bit
our economy is changing a little bit we’re moving from a manufacturing
we’re moving from a manufacturing
we’re moving from a manufacturing economy to a services economy so that it
economy to a services economy so that it
economy to a services economy so that it would be normal I think that you’d
would be normal I think that you’d
would be normal I think that you’d expect to see that that’s where we find
expect to see that that’s where we find
expect to see that that’s where we find the growth in employment the services
the growth in employment the services
the growth in employment the services sector in particular has benefited over
sector in particular has benefited over
sector in particular has benefited over the years since NAFTA began Canada has
the years since NAFTA began Canada has
the years since NAFTA began Canada has gone from importing more high-value
gone from importing more high-value
gone from importing more high-value services from the US than it exported to
services from the US than it exported to
services from the US than it exported to the exact opposite furthermore those
the exact opposite furthermore those
the exact opposite furthermore those employed by the oil industry
employed by the oil industry
employed by the oil industry significantly benefit from the increased
significantly benefit from the increased
significantly benefit from the increased export ation of that product to the US
export ation of that product to the US
export ation of that product to the US we want NAFTA to work we want free and
we want NAFTA to work we want free and
we want NAFTA to work we want free and fair trade and I think Canada wins in
fair trade and I think Canada wins in
fair trade and I think Canada wins in that way number six the agreement
that way number six the agreement
that way number six the agreement shifted trade balances
shifted trade balances
shifted trade balances the deficit do NASA as much as anything
the deficit do NASA as much as anything
the deficit do NASA as much as anything else when NAFTA went into effect
else when NAFTA went into effect
else when NAFTA went into effect everyone knew it would result in
everyone knew it would result in
everyone knew it would result in significant change but predicting
significant change but predicting
significant change but predicting exactly what those changes would be was
exactly what those changes would be was
exactly what those changes would be was difficult certainly many predicted a
difficult certainly many predicted a
difficult certainly many predicted a shift in trade balances but not everyone
shift in trade balances but not everyone
shift in trade balances but not everyone knew they would be as dramatic as they
knew they would be as dramatic as they
knew they would be as dramatic as they have been for example in 1993 us-mexico
have been for example in 1993 us-mexico
have been for example in 1993 us-mexico trade resulted in a net trade surplus of
trade resulted in a net trade surplus of
trade resulted in a net trade surplus of roughly five billion dollars for the
roughly five billion dollars for the
roughly five billion dollars for the United States in 2014 that had changed
United States in 2014 that had changed
United States in 2014 that had changed into a fifty four billion dollar deficit
into a fifty four billion dollar deficit
into a fifty four billion dollar deficit conversely the 1993 trade deficit of
conversely the 1993 trade deficit of
conversely the 1993 trade deficit of nearly three billion dollars the u.s.
nearly three billion dollars the u.s.
nearly three billion dollars the u.s. ran with Canada turned into a six
ran with Canada turned into a six
ran with Canada turned into a six billion dollar surplus in 2015 that’s
billion dollar surplus in 2015 that’s
billion dollar surplus in 2015 that’s quite a shift across both borders if
quite a shift across both borders if
quite a shift across both borders if lots of people are going to bring money
lots of people are going to bring money
lots of people are going to bring money to invest in the u.s. that’s going to
to invest in the u.s. that’s going to
to invest in the u.s. that’s going to mean a stronger dollar which is going to
mean a stronger dollar which is going to
mean a stronger dollar which is going to mean less competitive manufacturing
mean less competitive manufacturing
mean less competitive manufacturing number five opponents were worried about
number five opponents were worried about
number five opponents were worried about more than jobs
more than jobs
more than jobs well there’s largely a lack of public
well there’s largely a lack of public
well there’s largely a lack of public awareness of labor conditions of farm
awareness of labor conditions of farm
awareness of labor conditions of farm workers in Mexico one of the opped
workers in Mexico one of the opped
workers in Mexico one of the opped quoted arguments against NAFTA is the
quoted arguments against NAFTA is the
quoted arguments against NAFTA is the potential loss of jobs but in the
potential loss of jobs but in the
potential loss of jobs but in the lead-up to the signing of this agreement
lead-up to the signing of this agreement
lead-up to the signing of this agreement opponents voiced a number of other
opponents voiced a number of other
opponents voiced a number of other serious concerns beyond job loss many
serious concerns beyond job loss many
serious concerns beyond job loss many people worried about possible worker
people worried about possible worker
people worried about possible worker exploitation pointing to labor
exploitation pointing to labor
exploitation pointing to labor conditions in many Mexican factories as
conditions in many Mexican factories as
conditions in many Mexican factories as being substandard estas cosas d-end o en
being substandard estas cosas d-end o en
being substandard estas cosas d-end o en todos en todo mexico para tomatoes Oh
todos en todo mexico para tomatoes Oh
todos en todo mexico para tomatoes Oh c’est bien de todo el mundo what de
c’est bien de todo el mundo what de
c’est bien de todo el mundo what de gusta was residue Casas beyond human
gusta was residue Casas beyond human
gusta was residue Casas beyond human rights paying less for labor in one
rights paying less for labor in one
rights paying less for labor in one country also had the potential to hurt
country also had the potential to hurt
country also had the potential to hurt wages in all of the Pact nations in
wages in all of the Pact nations in
wages in all of the Pact nations in order to stay competitive many were also
order to stay competitive many were also
order to stay competitive many were also anxious about environmental effect such
anxious about environmental effect such
anxious about environmental effect such as increases in pollution brought about
as increases in pollution brought about
as increases in pollution brought about by more manufacturing in areas with
by more manufacturing in areas with
by more manufacturing in areas with lacks environmental safeguards number
lacks environmental safeguards number
lacks environmental safeguards number four
four
four there’s disagreement about nafta’s
there’s disagreement about nafta’s
there’s disagreement about nafta’s impact on the US for decades Washington
impact on the US for decades Washington
impact on the US for decades Washington has allowed other nations to wipe out
has allowed other nations to wipe out
has allowed other nations to wipe out millions of American jobs through unfair
millions of American jobs through unfair
millions of American jobs through unfair trade practices NAFTA was presented as a
trade practices NAFTA was presented as a
trade practices NAFTA was presented as a way to generate job growth and economic
way to generate job growth and economic
way to generate job growth and economic development for all the countries
development for all the countries
development for all the countries involved but it’s hard to objectively
involved but it’s hard to objectively
involved but it’s hard to objectively measure its performance NAFTA did not
measure its performance NAFTA did not
measure its performance NAFTA did not occur in a vacuum world events likely
occur in a vacuum world events likely
occur in a vacuum world events likely affected it
affected it
affected it in many ways critics cite a loss of as
in many ways critics cite a loss of as
in many ways critics cite a loss of as many as seven hundred and fifty thousand
many as seven hundred and fifty thousand
many as seven hundred and fifty thousand manufacturing jobs a depression in
manufacturing jobs a depression in
manufacturing jobs a depression in manufacturing wages and weakened
manufacturing wages and weakened
manufacturing wages and weakened environmental standards well we really
environmental standards well we really
environmental standards well we really under predicted what the damage would be
under predicted what the damage would be
under predicted what the damage would be so there has been a large increase in
so there has been a large increase in
so there has been a large increase in trade but a lot of it’s been a flood of
trade but a lot of it’s been a flood of
trade but a lot of it’s been a flood of new NAFTA import champions counter with
new NAFTA import champions counter with
new NAFTA import champions counter with the creation of as many as five million
the creation of as many as five million
the creation of as many as five million jobs lower prices for consumers and
jobs lower prices for consumers and
jobs lower prices for consumers and reduced government spending one study by
reduced government spending one study by
reduced government spending one study by the Peterson Institute for International
the Peterson Institute for International
the Peterson Institute for International Economics reveals a definite benefit but
Economics reveals a definite benefit but
Economics reveals a definite benefit but one that only works out to roughly four
one that only works out to roughly four
one that only works out to roughly four hundred dollars per person
hundred dollars per person
hundred dollars per person number three manufacturing went down
number three manufacturing went down
number three manufacturing went down wages went up what the Democrats at that
wages went up what the Democrats at that
wages went up what the Democrats at that point we’re ready to say and that is
point we’re ready to say and that is
point we’re ready to say and that is that NAFTA was going to cause America to
that NAFTA was going to cause America to
that NAFTA was going to cause America to lose millions of jobs when discussing
lose millions of jobs when discussing
lose millions of jobs when discussing the impact of NASA
the impact of NASA
the impact of NASA there is often a seesaw effect one thing
there is often a seesaw effect one thing
there is often a seesaw effect one thing goes down while another goes up and
goes down while another goes up and
goes down while another goes up and that’s definitely the case here the US
that’s definitely the case here the US
that’s definitely the case here the US had already been experiencing a decline
had already been experiencing a decline
had already been experiencing a decline in manufacturing before NAFTA but that
in manufacturing before NAFTA but that
in manufacturing before NAFTA but that decline significantly accelerated in the
decline significantly accelerated in the
decline significantly accelerated in the years that followed on the other hand
years that followed on the other hand
years that followed on the other hand wages and manufacturing actually went up
wages and manufacturing actually went up
wages and manufacturing actually went up from 1994 to 2004 pay for manufacturing
from 1994 to 2004 pay for manufacturing
from 1994 to 2004 pay for manufacturing jobs increased on average from 34% so
jobs increased on average from 34% so
jobs increased on average from 34% so there may have been fewer factory jobs
there may have been fewer factory jobs
there may have been fewer factory jobs but those that remain paid better
but those that remain paid better
but those that remain paid better ideally of course there’d be more jobs
ideally of course there’d be more jobs
ideally of course there’d be more jobs and better paying jobs but nobody ever
and better paying jobs but nobody ever
and better paying jobs but nobody ever said NAFTA was ideal we are asking too
said NAFTA was ideal we are asking too
said NAFTA was ideal we are asking too much of the nathir appeal to crazies job
much of the nathir appeal to crazies job
much of the nathir appeal to crazies job number two those lost jobs might not
number two those lost jobs might not
number two those lost jobs might not have been mapped asfalt
have been mapped asfalt
have been mapped asfalt our disastrous trade policies are one of
our disastrous trade policies are one of
our disastrous trade policies are one of the reasons as to why that has happened
the reasons as to why that has happened
the reasons as to why that has happened one of the most damning accusations
one of the most damning accusations
one of the most damning accusations flung against NAFTA involves the loss of
flung against NAFTA involves the loss of
flung against NAFTA involves the loss of all those apper mentioned manufacturing
all those apper mentioned manufacturing
all those apper mentioned manufacturing jobs after all even if jobs are created
jobs after all even if jobs are created
jobs after all even if jobs are created in other sectors of the economy that
in other sectors of the economy that
in other sectors of the economy that doesn’t necessarily help someone whose
doesn’t necessarily help someone whose
doesn’t necessarily help someone whose training hasn’t prepared them for jobs
training hasn’t prepared them for jobs
training hasn’t prepared them for jobs in those sectors according to economist
in those sectors according to economist
in those sectors according to economist Walter Kenzie’s however it’s likely that
Walter Kenzie’s however it’s likely that
Walter Kenzie’s however it’s likely that many of those jobs would have been lost
many of those jobs would have been lost
many of those jobs would have been lost even if there had been no NAFTA the
even if there had been no NAFTA the
even if there had been no NAFTA the emergence of China as a major
emergence of China as a major
emergence of China as a major international economic force
international economic force
international economic force it’s low-priced manufacturing abilities
it’s low-priced manufacturing abilities
it’s low-priced manufacturing abilities probably had a greater effect than NAFTA
probably had a greater effect than NAFTA
probably had a greater effect than NAFTA as did technological advances during the
as did technological advances during the
as did technological advances during the period and you say you know what I’d
period and you say you know what I’d
period and you say you know what I’d like you to watch over the deals that
like you to watch over the deals that
like you to watch over the deals that are being made with China because we’re
are being made with China because we’re
are being made with China because we’re getting killed on trade number one
getting killed on trade number one
getting killed on trade number one tariffs are not welcome under NAFTA
tariffs are not welcome under NAFTA
tariffs are not welcome under NAFTA certainly Canada tries to do as much
certainly Canada tries to do as much
certainly Canada tries to do as much trade as it can in the United States and
trade as it can in the United States and
trade as it can in the United States and vice versa but always in the basis of
vice versa but always in the basis of
vice versa but always in the basis of following the rules and not cheating
following the rules and not cheating
following the rules and not cheating tariffs are taxes put on goods that are
tariffs are taxes put on goods that are
tariffs are taxes put on goods that are imported into a country and are
imported into a country and are
imported into a country and are typically used to increase sales of
typically used to increase sales of
typically used to increase sales of homegrown goods but tariffs are a no-no
homegrown goods but tariffs are a no-no
homegrown goods but tariffs are a no-no under NAFTA and under most free-trade
under NAFTA and under most free-trade
under NAFTA and under most free-trade agreements the playing field is supposed
agreements the playing field is supposed
agreements the playing field is supposed to be leveled and tariffs do the
to be leveled and tariffs do the
to be leveled and tariffs do the opposite because of a pre-existing
opposite because of a pre-existing
opposite because of a pre-existing agreement there was already tariff free
agreement there was already tariff free
agreement there was already tariff free trade between Canada and the US
trade between Canada and the US
trade between Canada and the US NAFTA immediately removed about 50% of
NAFTA immediately removed about 50% of
NAFTA immediately removed about 50% of the tariffs with Mexico then removed the
the tariffs with Mexico then removed the
the tariffs with Mexico then removed the rest by 2008 restoration of tariffs is
rest by 2008 restoration of tariffs is
rest by 2008 restoration of tariffs is sought by some but it’s difficult to
sought by some but it’s difficult to
sought by some but it’s difficult to make work in the NAFTA framework if
make work in the NAFTA framework if
make work in the NAFTA framework if there’s refinements if there’s
there’s refinements if there’s
there’s refinements if there’s alterations if we need to look at NAFTA
alterations if we need to look at NAFTA
alterations if we need to look at NAFTA once again and and find some adjustments
once again and and find some adjustments
once again and and find some adjustments I think that’s ok do you agree with our
I think that’s ok do you agree with our
I think that’s ok do you agree with our picks check out these other great clips
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