PART 1: OVERALL SUMMARY AND CONTEXT OF THE
What is the main issue(s)
discussed in the article?
The main issue discussed in the
article is an ongoing issue actually and this article reflects upon the 5th
roundtable meeting where the charm offensive is set in place to reach a
solution; whether to terminate NAFTA completely or not or to renegotiate the
terms in the hopes to make all three countries content.
What is the general background of
the situation and why is this important and “newsworthy”?
The general background of the
situation is that the president of America in this current time, Donald Trump
feels that Americans have been at a disadvantage because of NAFTA.
NAFTA is the North American Trade
Free Agreement, which is a trade deal between three major countries negotiated
under President George H. W. Bush and implemented under Bill Clinton in 1994.
This agreement is basically put into place to make the flow of goods and
services that which can be done in serenity.
Who are the main participants?
The main participants of this
charm offensive are the three countries involved in NAFTA, which consists of
Canada, US, and Mexico.
PART 2: GLOBAL IMPACT
What do the main participants
stand to gain or lose in this situation?
participants stand to gain much if the three countries come to an agreement in
terms of keeping NAFTA going onwards. NAFTA serves as a strong back bone of
keeping the economy stable, and many advantages that of which include
increasing and encouraging trade, reducing inflation, keeping the interest
rates low, furthermore speaking for US economy there has been a growth of 0.5%/
year and has benefited the industries of automotive, and agricultural services
the most. Moreover, since NAFTA has been put in place, the US foreign direct
investment in Canada and Mexico has more than tripled, having reached $452
billion by 2012, which in turn pushed profits for US businesses, allowing for
them to explore more markets and develop through the many opportunities present
What is the positive and negative
impact to the people of these participating nations/parties?
holds more of a negative impact than a positive impact, the only different is
how much damage the change in NAFTA agreements will bring, and in worst case
scenario the results that are bound to unfold for the people of these
participating nations/parties if NAFTA is to be terminated completely. In a
report conducted by Maham Abedi (National online journalist for Global News),
it states that Nathan Janzen (Senior Economist at the Bank), that if NAFTA were
to be killed, Canada, US, and Mexico would all be subjected to WTO tariff
rates, and that those tariff rates are not actually that high as you may think.
Also, that if you go from free trade to 3.5 per cent average tariff it’s not
good for the economy in the longer run, but it is not as disastrous in the
short term as it if often thought. This shows that although the termination of
NAFTA might not be as bad in the short-term run, it is however a negative way
to go about for the future of 3 countries in the long run.
policies and terms are changed to come to an agreement for a serenity between
Canada, US, and Mexico, there is still a chance for the people of these nations
to suffer from such changes, whether minor or big. In the article by Maham
Abedi, it states that even if the tariff increases are small, the RBC report
estimates that 500,000 Canadian jobs in “Highly Trade-Sensitive Sectors” will
be effected if NAFTA is killed, and that industries that depend heavily on US
trade will experience a hug negative impact on their business, as NAFTA has
been on-going for 2 decades and a lot of industries are inter-connected.
PART 3: YOUR
Any other relevant facts,
opinions, or arguments that you would like to add to enhance your analysis
In your opinion, how can the situation
be resolved or improved?
In my opinion, this situation can
be resolved or improved by going at it as how they are. This is because they
didn’t really come to a close agreement where they decided that we will
completely terminate NAFTA completely, rather all three countries are meeting
up and discussing to ensure that they put in their behalf of the work to do
what is best for the country and what would term and negotiations will serve as
a benefit of keeping NAFTA going rather than shutting it completely. This is
why I feel like that although it is a worm hole that will lead to dangerous
outcomes if NAFTA is terminated, but at the same time I am confident as the
countries put up their end of the fight to ensure that whatever action is taken
is what best suitable for all three countries and the people of these nations.
Why did you choose this News item
and why is this situation interesting and relevant to you personally?
I chose this new item as I felt
that this is something that not only affects the nation, but if not carried out
with the proper terms and agreement will have a huge toll in my life too. This
situation is interesting as it is inter-connected with us individuals too, as
any change can cause many changes to take place in the economy which can have
both a direct and indirect impact on our lives as well. Hence, why I felt that
this topic was an interesting and relevant topic for me personally.