PART 1: OVERALL SUMMARY AND CONTEXT OF THESITUATION · What is the main issue(s)discussed in the article? The main issue discussed in thearticle is an ongoing issue actually and this article reflects upon the 5throundtable meeting where the charm offensive is set in place to reach asolution; whether to terminate NAFTA completely or not or to renegotiate theterms in the hopes to make all three countries content.· What is the general background ofthe situation and why is this important and “newsworthy”? The general background of thesituation is that the president of America in this current time, Donald Trumpfeels that Americans have been at a disadvantage because of NAFTA.NAFTA is the North American TradeFree Agreement, which is a trade deal between three major countries negotiatedunder 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 andservices that which can be done in serenity.
· Who are the main participants?The main participants of thischarm offensive are the three countries involved in NAFTA, which consists ofCanada, US, and Mexico.PART 2: GLOBAL IMPACT · What do the main participantsstand to gain or lose in this situation?The mainparticipants stand to gain much if the three countries come to an agreement interms of keeping NAFTA going onwards. NAFTA serves as a strong back bone ofkeeping the economy stable, and many advantages that of which includeincreasing and encouraging trade, reducing inflation, keeping the interestrates low, furthermore speaking for US economy there has been a growth of 0.5%/year and has benefited the industries of automotive, and agricultural servicesthe most.
Moreover, since NAFTA has been put in place, the US foreign directinvestment in Canada and Mexico has more than tripled, having reached $452billion by 2012, which in turn pushed profits for US businesses, allowing forthem to explore more markets and develop through the many opportunities presentat hand.· What is the positive and negativeimpact to the people of these participating nations/parties?This situationholds more of a negative impact than a positive impact, the only different ishow much damage the change in NAFTA agreements will bring, and in worst casescenario the results that are bound to unfold for the people of theseparticipating nations/parties if NAFTA is to be terminated completely. In areport conducted by Maham Abedi (National online journalist for Global News),it states that Nathan Janzen (Senior Economist at the Bank), that if NAFTA wereto be killed, Canada, US, and Mexico would all be subjected to WTO tariffrates, 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 notgood for the economy in the longer run, but it is not as disastrous in theshort term as it if often thought.
This shows that although the termination ofNAFTA might not be as bad in the short-term run, it is however a negative wayto go about for the future of 3 countries in the long run. Furthermore, evenpolicies and terms are changed to come to an agreement for a serenity betweenCanada, US, and Mexico, there is still a chance for the people of these nationsto suffer from such changes, whether minor or big. In the article by MahamAbedi, it states that even if the tariff increases are small, the RBC reportestimates that 500,000 Canadian jobs in “Highly Trade-Sensitive Sectors” willbe effected if NAFTA is killed, and that industries that depend heavily on UStrade will experience a hug negative impact on their business, as NAFTA hasbeen on-going for 2 decades and a lot of industries are inter-connected.PART 3: YOURANALYSIS · Any other relevant facts,opinions, or arguments that you would like to add to enhance your analysis· In your opinion, how can the situationbe resolved or improved?In my opinion, this situation canbe resolved or improved by going at it as how they are. This is because theydidn’t really come to a close agreement where they decided that we willcompletely terminate NAFTA completely, rather all three countries are meetingup and discussing to ensure that they put in their behalf of the work to dowhat is best for the country and what would term and negotiations will serve asa benefit of keeping NAFTA going rather than shutting it completely. This iswhy I feel like that although it is a worm hole that will lead to dangerousoutcomes if NAFTA is terminated, but at the same time I am confident as thecountries put up their end of the fight to ensure that whatever action is takenis what best suitable for all three countries and the people of these nations.
· Why did you choose this News itemand why is this situation interesting and relevant to you personally?I chose this new item as I feltthat this is something that not only affects the nation, but if not carried outwith the proper terms and agreement will have a huge toll in my life too. Thissituation is interesting as it is inter-connected with us individuals too, asany change can cause many changes to take place in the economy which can haveboth a direct and indirect impact on our lives as well. Hence, why I felt thatthis topic was an interesting and relevant topic for me personally.