Top-Rated Free Essay
Preview

Policy Memo

Satisfactory Essays
647 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Policy Memo
Policy Memo to Francisco de Rosenzweig
Analyzing Mexico’s role in TAFTA 27 May 2013

Currently on the Transatlantic Free Trade Area also known as TAFTA or TTIP (Transatlantic Trade and Investment Partnership) is a proposed free trade area between Europe and the United States, the original trade was proposed in the 90s, but it in 2007 they consider making it happen again but it finished in nothing.
In March 2013, President Barack Obama, told that it was a priority to his government to made TAFTA happen, so he announced that the United States would submit a formal request to start negotiations with de European Union, setting July 2013 as the deadline to reach an accord on the start of the negotiation.
Before all the information and relevance of TAFTA the United States efforts were made in TPP (transpacific partnership) that includes de most developed countries in Asia and the most important in America.
The TAFTA is a Free trade Agreement, supposedly to be between all the countries in de European Union, the United States, Canada, Mexico, EFTA and some other countries Turkey that doesn’t be part of EU.
United States as part of NAFTA is seeking to have his partners in the new Free-Trade-Agreement making them stronger and with a more ambitious position. Mexico and Canada have an implied risk and opportunity if they be part of TAFTA, because it has a very high grade of discipline to make and make the objectives that the TAFTA will need to make it happen.
In this TAFTA Mexico plays a different role that with NAFTA agreement which is with his principal commerce partner USA and Canada, so USA which is one of the principal countries in TAFTA, Mexico knows the benefits of this type of agreements.
Mexico as an exporting country, may be benefited maintaining the FTA with the EU have concluded an Economic Partnership, Political Coordination and Cooperation Agreement in 1997, which included trade provisions that were developed in a comprehensive Free Trade Agreement that entered into force in October 2000 for the part related to trade in goods - and in 2001 for that related to trade in services, so Mexico will be benefited with being part of TAFTA but it isn’t new for Mexico to have FTA with the European Union.
From another perspective in a German study about the position that the countries will have if TAFTA happens, including cutting-edge disciplines, Mexico would have an effect equivalent to a welfare loss of 7.2 percent.
Under the initial agreement, the TAFTA should include disciplines on non-tariff barriers, small and medium enterprises, transparency, competition policy, intellectual property rights and relevant global opportunities, among others.
The relevance of TAFTA can be seen with this kind of numbers, trade area between the United States and the European Union would represent 50% of global GDP, with only 11.8% of the global population.
Mexico can approach for TAFTA like when Mexico begin in NAFTA, but there is a huge difference because Mexico’s macroeconomic stability in this moment implied that the risk in Mexico is so much lower than in 1994, also the industrialized part of Mexico is more competitive worldwide now than It was in the begging of NAFTA, so Mexico is more prepared for this kind of globalized agreement, that make all the countries compete in a more fairly condition.
I think that Mexico should find a way to be part of the Transatlantic Free Trade Agreement, the ideal way to be part of the TAFTA is if the members of NAFTA enter the TAFTA as one unit, so they can be supported between them and can watch for the interest that they have.

--------------------------------------------
[ 1 ]. http://www.bmwi.de/English/Redaktion/Pdf/dimensions-and-effects-of-a-transatlantic-free-trade-agreement-between-the-eu-and-usa,property=pdf,bereich=bmwi2012,sprache=en,rwb=true.pdf

You May Also Find These Documents Helpful

  • Powerful Essays

    In 1994, Mexico, Canada, and the United States entered into one of the worlds largest free trade regions called the North American Free Trade Agreement (NAFTA) (Salas, 2005). The most noteworthy feature of the agreement is that it between two highly economic and socially developed countries and one still developing. The boost in trade and the increased financial flow between these countries has resulted in one of the more economically merged areas in the world.…

    • 1374 Words
    • 6 Pages
    Powerful Essays
  • Good Essays

    Nafta

    • 4045 Words
    • 17 Pages

    We begin by looking at how the negotiations for NAFTA began and why. In the 1970’s, Mexico had a huge oil boom from new resources. The country, as a whole, was doing quite well during this time. The problem was that Mexico’s economy largely depended on oil exports alone. When there was a collapse of production, many countries sought other means of importing oil. The collapse almost ruined Mexico’s economy because of the amount of foreign debt already owed. In 1978, Mexico applied for membership to the General Agreement on Tariffs and Trade (GATT). The Mexican government also wrote a protocol of accession, or waiver, which allowed Mexico to trade without having to join the GATT. The final decision was not to join the GATT and go with the protocol of accession. When oil prices dropped and inflation rose, Mexico found it hard to generate non-oil revenue. As a result, in 1986, Mexico resubmitted for membership to the GATT and began trade negotiations with the U.S.…

    • 4045 Words
    • 17 Pages
    Good Essays
  • Good Essays

    NAFTA is categorized as one of the largest formed trading blocs. Despite the expansion and diversification in the economies of member states, there has been quite a number of setbacks as a result of the enactment of the trading platform. NAFTA'S focus was to reduce tariffs among member states namely Mexico, Canada, and the United States over the years, making it easier to trade goods across national borders, and increasing economic efficiency in North America.…

    • 478 Words
    • 2 Pages
    Good Essays
  • Good Essays

    Mexican Labor Law

    • 1236 Words
    • 5 Pages

    Mexico is one of the world’s largest free trade agreement networks and most diversified economies which makes the country a very attractive trade hub and according to World Bank reports by 2050, Mexico could become the world's fifth or seventh largest economy.…

    • 1236 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Pros And Cons Of Nafta

    • 320 Words
    • 2 Pages

    It has helped each country’s economy a lot. Mexico hasn’t benefited a lot from this agreement but since they have added internal reforms to the economy they have started to gain competitiveness and the platform that has been constructed mostly for exports and their manufacturing is also starting to become stronger. Even economists Jaime Serra Puche said “I think NAFTA has been excellent for Mexico.” Even politicians like Bill Clinton and Hillary Clinton have said that NAFTA has been an excellent decision, Mexico, Canada and USA has made. They said it has a high value in todays society mainly because of all the new jobs the agreement has created. Bill Clinton said “NAFTA means jobs, and good paying jobs, if I didn’t believe that, I wouldn’t support this agreement”. In these next three paragraphs you’re going to hear about all the pros and cons that NAFTA has given Canada, USA, and…

    • 320 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    NAFTA

    • 726 Words
    • 3 Pages

    The North American Free Trade Agreement, also known as “NAFTA” took effect January 1, 1994. It is a trade agreement between the three countries of North America, which are The United States, Canada, and Mexico. The Canadian Prime Minister, Brian Mulroney, the Mexican President, Carlos Salinas de Gortari, and former United States President George H. Bush organized the agreement. The relationship between the countries were already on good terms, especially between the two northern countries US and Canada which five years before NAFTA had gone into effect by the agreement that was signed of Free Trade Agreement that eliminated all tariffs between the two countries. It was only time before a more integrated agreement was put into effect for all of North America. The geographic location and the previously established trade of goods and services made NAFTA a logical decision welcoming Mexico into the bargain.…

    • 726 Words
    • 3 Pages
    Good Essays
  • Good Essays

    Canada part of NAFTA

    • 7446 Words
    • 30 Pages

    The North American Free Trade Agreement (NAFTA) is an agreement signed byCanada, Mexico, and the United States, creating a trilateral trade bloc in North America. The agreement came into force on January 1, 1994. It superseded the Canada–United States Free Trade Agreement between the U.S. and Canada. In terms of combinedpurchasing power parity GDP of its members, as of 2007 the trade bloc is the largest in the world and second largest by nominal GDP comparison.…

    • 7446 Words
    • 30 Pages
    Good Essays
  • Powerful Essays

    Nafta remains the model for trade agreements with developing Latin countries, including the Central American Free Trade Agreement, passed by Congress in 2005. Three more Nafta-like agreements are now pending in Congress — with Panama, Columbia and Peru. When Nafta finally became a reality, on Jan. 1, 1994, American investment flooded into Mexico, mostly to finance factories that manufacture automobiles, appliances, TV sets, apparel and the like. The expectation was that the Mexican government would do its part by investing billions of dollars in roads, schooling, sanitation, housing and other needs to accommodate the new factories as they spread through the country.…

    • 3517 Words
    • 15 Pages
    Powerful Essays
  • Good Essays

    Nafta Thesis

    • 472 Words
    • 2 Pages

    The North American Free Trade Agreement is a free trade agreement among Canada, the United States of America, and Mexico, based on the model of the European Communities (today: European Union). NAFTA was signed separately by the leaders of the three countries, president Bill Clinton, president Carlos Salinas de Gortari and prime minister Brian Mulroney on December 17, 1992 and went into effect on January 1, 1994.…

    • 472 Words
    • 2 Pages
    Good Essays
  • Satisfactory Essays

    Mexico Background Paper

    • 439 Words
    • 2 Pages

    2. Mexico and the United States share many economic interests and are partners of the Trans-Pacific Partnership1. According to whitehouse.gov, “our countries are economically entwined” and on any given day over $1.5 billion crosses our border. Mexico’s economy relies heavily on the free-market economy of tourism, agriculture and exports to the United States. According to state.gov, in 2013 two-way trade in goods and services was more than $1.4 trillion. Mexico is among…

    • 439 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Nafta Advantages

    • 489 Words
    • 2 Pages

    NAFTA is one example of an institution that has an effect on the economy and that is why NAFTA has become an issue for lawmakers. As previously stated, U.S. trade representative believe that the U.S. is not benefiting as much as it should from the NAFTA agreement. That is why the U.S. government, an organization, is pushing for a change of the agreement. U.S. officials want to see the interest of America better represented in the agreement through a formal change of the institution. However, the other organizations in the agreement, Canada and Mexico, do not feel the same way as the U.S. Both nations have benefited a great deal from the NAFTA agreement and they are resistant to change. This clash in opinion on the benefit of the agreement is an example of why institutional change is a slow process. Since multiples countries are involved, they are looking out for their own individual…

    • 489 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    This free trade was primarily focused on international companies and countries beyond Europe. Renewing the President's authority to negotiate trade agreements on a "fast track” basis is an important step to achieve this goal. However one of the issues with this is that imports are crushing the amount of exports. In other words, we as a whole country have become too reliant on other countries, and in doing so, have become a dependent nation in terms of goods and trading. We can see this best with our need for foreign oil and its negative impacts that…

    • 665 Words
    • 3 Pages
    Good Essays
  • Powerful Essays

    Since 2010, negotiations have occurred for the Trans-Pacific Partnership (TPP), a proposal for a significantly expanded version of TPSEP. The TPP is a proposed trade agreement under negotiation by (as of 8/2013) Australia, Brunei, Chile, Canada,Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the United States, and Vietnam.…

    • 2315 Words
    • 9 Pages
    Powerful Essays
  • Good Essays

    Free Trade

    • 1303 Words
    • 6 Pages

    North American Free Trade Agreement, one of the largest free trade areas, which in 1994 established a free-trade zone between the US, Canada, and Mexico. NAFTA passed with some important negotiations to protect the environment and labor standards. In 2001, President Bush organized the proposal of expanding NAFTA to a Free Trade Area for the Americas, surrounding 34 countries and 800 million people by 2005. President Obama continues to push for expansion to CAFTA known as Central America Free Trade Agreement. NAFTA now links 450 million people producing $17 trillion worth of goods and services.…

    • 1303 Words
    • 6 Pages
    Good Essays
  • Powerful Essays

    Sime Darby Plantation Sdn

    • 1670 Words
    • 6 Pages

    Although negotiations undertaken for the ITO proved unsuccessful, the United States proposed that the commercial policy provisions that were originally be included in the ITO agreements should be temporarily incorporated into the General Agreement on Tariffs and Trade (GATT). As free market policies continued to be the dominant political force concerning trade around the world, a host of new markets opened…

    • 1670 Words
    • 6 Pages
    Powerful Essays