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Vocabulary
Trade Agreements
NAFTA
NAFTA was a major agreement the United States entered into in the mid-1990s. There was plenty of emotion from those who supported and opposed the agreement. The benefits and costs of NAFTA are still brought up in election cycles as politicians promise to protect American jobs.
Read this NAFTA article from the U.S. Dept. of Commerce to learn what NAFTA stands for and what three nations comprise the trade agreement.
- In this article, also read the headlines of articles you see presented in the Commerce Department site.
- Read the vocabulary terms that are 'tagged below each article. This will give you some idea of what comprises the economics of international trade.
- You may notice several articles about efforts to renegotiate the rules of the agreement. As with all trade agreements, the political policymakers may consider new trade additions or deletions to the pact.
Quick Review:
- What does NAFTA stand for?
- What three nations formed NAFTA?
Other trade agreements exists as well, including CAFTA. This agreement includes all of the nations in Central America and the United States.
GATT
After WWII many nations of the world came together to discuss the reduction of tariffs and trade restrictions that were prominent throughout the world. The agreement that came out of this gathering was the General Agreement on Tariffs and Trade (1947). GATT was a monumental effort by the participating nations to increase trade around the world.
GATT was replaced by the World Trade Organization in 1995, but the framework for GATT is the basis for the WTO. You will more about the WTO when you complete one of the tasks at the end of the lesson.