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NAFTA & BRICS ECONOMIC

INTEGRATION
Presented by :Ahmad Essam

NAFTA & BRICS Economic Integration

Outline
-Economic integration
-NAFTA
-BRICS
-Conclusion

Introduction

Economic Integration is:


Unification of economic policies between different
states.
Leads to lower prices for distributors and
consumers .
Increasing the combined economic productivity of
the states.

NAFTA
North American Free Trade Agreement

Establishment: 1994
Members: USA, CANADA & MEXICO
GDP of NAFTA alliance: USD 12 trillion

NAFTA
Objectives:

Eliminate trade barriers & facilitate the cross-border movements of goods and
services.
Promote conditions of fair competition.

Increase investment opportunities.

Provide protection of intellectual property rights.

Establish a framework for further trilateral, regional and multilateral cooperation to expand and enhance benefits of this agreement.

NAFTA
Benefits:

NAFTA improved market access including tariff reductions on


merchandise trade.

NAFTA had been beneficial to business owners in all three


countries .

Mexicos poverty rate decreased and real income increased.

Canada became the leading destination for U.S. exports

NAFTA

U.S. Direct Investment in Canada and Mexico, 1988-2001

NAFTA

U.S. Tourism in Canada and Mexico 1989-2001(number of arrival in millions)

NAFTA

Adverse Effects:

NAFTA resulted a net loss of 394,834 jobs in first


3 years.
Negative impacts on farmers in Mexico who saw
food prices fall.
Negative impacts on U.S. workers in
manufacturing & assembly industries who lost
jobs.

BRICS
An association between five major emerging national economies: BrazilRussia-India-China-South Africa

First summit:2009 in Russia (BRIC countries)


Africa joined in 2010
Area: over 25% of worlds land area
Population: 3 Billion(40% worlds population)
GDP:15 trillion dollars

South

BRICS
Advantages:

Higher trading capacity


Fuller utilization of resources
Full use of the factors of production
More employment
Control over inflation
Increase in GDP
Overall growth

BRICS
Developments:

The BRICS Forum: an independent international organization


encouraging commercial, political and cultural cooperation between
the BRICS nations, formed in 2011.

In June 2012, the BRICS nations pledged $75 billion to boost the
lending power of the International Monetary Fund (IMF).

In March 2013, BRICKS agreed establishment of The BRICS


Development Bank to provide funding for projects, and create a
Reserve Arrangement worth $100 billion.

BRICS

The ten largest economies in the world in 2050, measured in GDP (billions of 2006
USD)

Conclusion

Economic Integration plays an important role in


development of nations and helps increasing of
economic growth

On the other hand it may have some defects on


countries like loss of jobs ,migration and inequality.

NAFTA & BRICS Economic Integration

Any Questions ?
Thanks.