North American Free Trade Agreement: A Focus on the Substantive Issues
(Testimony, 09/21/93, GAO/T-GGD-93-44).

The North American Free Trade Agreement (NAFTA), a dramatic step in the
process of North American economic integration, has generated much
controversy over its potential impact.  In the first volume of the
related report, GAO/GGD-93-137, GAO briefly summarizes major provisions
of the agreement and discusses their broad effects on the economy, the
environment, labor, and immigration.  In the second volume, organized as
a sourcebook, GAO gives more detail on specific provisions of the
agreement.  In particular, GAO examines the objectives of the
negotiators from each country, the major components of the agreement,
and the unresolved issues.  The sourcebook provides information on
NAFTA's (1) provisions to liberalize trade and investment in North
America, (2) special provisions for trade-sensitive economic sectors,
(3) rules to implement the agreement, and (4) potential impacts.  GAO
concludes that the agreement will yield both costs and benefits, with
some sectors of the U.S. economy and work force shouldering a larger
burden.  For example, NAFTA may produce benefits at the macroeconomic
level but at the expense of job losses in some industries, particularly
among low-skilled workers.  GAO notes significant weaknesses in the two
major federal programs intended to help the adjustment of unemployed
workers.

--------------------------- Indexing Terms -----------------------------

 REPORTNUM:  T-GGD-93-44
     TITLE:  North American Free Trade Agreement: A Focus on the 
             Substantive Issues
      DATE:  09/21/93
   SUBJECT:  International agreements
             International trade
             Tariffs
             Trade policies
             Foreign trade agreements
             International economic relations
             Investments abroad
             International trade regulation
             Economic analysis
             Economic growth
IDENTIFIER:  Canada
             Mexico
             North American Free Trade Agreement
             NAFTA
             DOL Economic Dislocation and Worker Adjustment Assistance 
             Program
             Trade Adjustment Assistance Program
             
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