international organizations multi-national groups intended create for an economic purpose
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NAFTA
Became policy on January 1, 1994
Agreement between United States, Canada and Mexico
Primary focus is on trade
NAFTA - Purpose
“Under the NAFTA, all non-tariff barriers to agricultural trade between the United States and Mexico were eliminated. In addition, many tariffs were eliminated immediately, with others being phased out over periods of 5 to 15 years. This allowed for an orderly adjustment to free trade with Mexico, with full implementation beginning January 1, 2008.”
- Foreign Agricultural Servicewww.fas.usda.gov
NAFTA - OverviewThe primary function of NAFTA is to eliminate barriers to trade on this continent. Ideally, it expands the available market for domestic products.
EU – European Union
Current form created in 1993
Focus is on stabilizing the European economy
Policies are intended to “ensure the free movement of people, goods, services and capital….” between member nations
EU - Purposes
Relaxation of borders = easier trade
Common currency 1999= less confusion in international transactions◦ Not all European countries
use the EuroEstablish common
goals related to defense, education, agriculture and the environment
International Monetary Fund - IMF
Established in 1945Made up of 187
member nations◦Same as the United
NationsIs essentially a
component of the United Nations
Focus is on global economic stability
IMF - Purpose
Stated objectives are to promote:◦international economic cooperation◦international trade ◦employment and ◦exchange rate stability
making resources available to member countries to meet ways to balance their debt payments
Works to stabilize:◦World currencies◦Exchange rates
World Bank - WB
Established in 1945Made up of 187
member countriesEssentially a
component of the United Nations
Focus is on the elimination of poverty
World Bank - Purpose
Focus ways to reduce poverty:◦Increase investments in developing countries
◦Encourage international trade, particularly for developing countries
◦Invest in ways to develop infrastructureRunning waterElectricityRoads/means of transportation
◦All of which increase commerce/trade
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World Trade Organization - WTO
Established in 1995
Has 153 member countries
Focus is on the development and expansion of international trade
WTO - Purpose
It is an organization for trade opening. It is a forum for governments to negotiate trade agreements. It is a place for them to settle trade disputes. It operates a system of trade rules. Essentially, the WTO is a place where member governments try to sort out the trade problems they face with each other.
Will sometimes establish trade barriers – to protect consumers or prevent the spread of disease
Help trade flow as freely as possible-www.wto.org
Organization of Petroleum Exporting Countries - OPEC
Established in 1960Iran, Iraq, Kuwait,
Saudi Arabia and Venezuela = founding members◦ Joined by Qatar, Libya,
UAE, Algeria, Nigeria, Ecuador and Angola
Focus is on distribution of petroleum (oil)
OPEC - Purpose
Stabilization of prices in international oil markets with a view to eliminating harmful and unnecessary fluctuations
Securing a steady income to the producing countries
Provide an efficient and regular supply of petroleum to consuming nations
Give a fair return on their capital to those investing in the petroleum industry