Report G8 Activities NAFTA

Report G8 activity : NAFTA

Donald Hank

NAFTA G8 Countries’ Trade with Brazil

Canadian Exports: $2,578,954,095

Canadian Imports: $3,966,130,100

Foreign Direct Investment in Canada: $15, 810 (million)

Canadian Direct Investment in Brazil: $9, 844 (million)

U.S. goods exports to Brazil in 2012 $43.7 billion

U.S. goods imports from Brazil in 2012 $32.1 billion

U.S. foreign direct investment (FDI) in Brazil (stock) in 2011 $71.1 billion

Brazil FDI in the United States (stock) in 2011 $5.0 billion

Charles Meyers

EU Trade Volume with NAFTA: 17.5%

NAFTA's current trade policies with EU:

-EU in talks with U.S. for Transatlantic Trade and Investment Partnership (TTIP). First round of talks complete. Looking to set-up free trade agreement from partnership.

-EU also in talks with Canada for Comprehensive Economic and Trade Agreement (CETA). It would increase Canada's and EU's bilateral trade by another 25.7 billion euro.

-EU has agreement with Mexico. A comprehensive free trade agreement since October 2000. Since 2000 the total bilateral trade has doubled from 21.7 billion euro to 47.1 billion euro. EU trade commissioner called for current FTA to be upgraded.

Trade Issues:

-US and EU have different standards and methods to achieve same goals which cause Non-Tariff Barriers (NTB's) which lead to problems when negotiating for free-trade. Need to recognize each other's standards and approve them so deal can be met, thus allowing increases in trade.

-US has low average tariffs (under 3%) with EU. Most issues are NTB.

-Mexico has free trade with EU.

-Canada is in talks about free trade.

Sources:

ec.europa.eu

www.international.gc.ca

Mengqiao Zhang

''The export of japan to NAFTA member countries was 129 billion dollars and the Japanese import from NAFTA countries was 76 billion dollars in the year of 1998. The trade volume should significantly be increased after decades of developments.

NAFTA is the counterpart of Japan in economic competition. When NAFTA was established, the Mexican consumers tend to purchase more American products than Japanese products, which hurt the benefits of Japan. Japan also worried about the size of NAFTA and they think that one day NAFTA might expanded into the Asia. If japan is isolated from NAFTA, the export of Japan might lose competitiveness compared with the countries included by NAFTA.

The specific policy that potentially might hurt japan is that the tariff-free cars must have a high percentage of components to be manufactured inside NAFTA countries.

The question I will ask is that the free trade agreement is actually one type of trade barrier towards Japan. The benefits of Japan are hurt. Since japan is an important economic partner of NAFTA, can they incorporate Japan in NAFTA or can they reduce the tariff currently exerted on Japanese export?

The trade volume data is

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