Prosec (Program of Sectoral Promotion) is a program started by the Mexican government after the implementation of the North American Free Trade Agreement (NAFTA) to overcome the challenges faced by international factories (maquiladoras)) in Mexico resulting from NAFTA article 3. Article 3 states that no NAFTA member can waive or reduce import tariffs conditioned upon the export of the finished good to another NAFTA country. The result was that after Mexico joined NAFTA the tariff rates for many of the raw materials used by maquiladora manufacturing companies would have risen significantly, particularly for goods of Chinese origin.
The North American Free Trade Agreement is an agreement signed by Canada, Mexico, and the United States, creating a trilateral trade bloc in North America. The agreement came into force on January 1, 1994. It superseded the 1988 Canada–United States Free Trade Agreement between the United States and Canada, and is expected to be replaced by the United States–Mexico–Canada Agreement once it is ratified.
A maquiladora ([makilaˈðoɾa]), or maquila, is a company that allows factories to be largely duty free and tariff free. These factories take raw materials and assemble, manufacture, or process them and export the finished product. These factories and systems are present throughout Latin America including Mexico, Nicaragua and El Salvador. Specific programs and laws have made Mexico’s maquila industry grow rapidly.
Mexico, officially the United Mexican States, is a country in the southern portion of North America. It is bordered to the north by the United States; to the south and west by the Pacific Ocean; to the southeast by Guatemala, Belize, and the Caribbean Sea; and to the east by the Gulf of Mexico. Covering almost 2,000,000 square kilometres (770,000 sq mi), the nation is the fifth largest country in the Americas by total area and the 13th largest independent state in the world. With an estimated population of over 120 million people, the country is the tenth most populous state and the most populous Spanish-speaking state in the world, while being the second most populous nation in Latin America after Brazil. Mexico is a federation comprising 31 states and Mexico City, a special federal entity that is also the capital city and its most populous city. Other metropolises in the state include Guadalajara, Monterrey, Puebla, Toluca, Tijuana and León.
Prosec is a tariff-reduction measure that avoids running into problems with NAFTA article 3 by allowing either foreign or domestic producers, irrespective of whether the finished good is intended for exportation or domestic sale, to petition the government for a reduction or elimination of a tariff rate.
Prosec only applies to certain sectors of the Mexican economy including automotive, textile and electronics.
The General Agreement on Tariffs and Trade (GATT) is a legal agreement between many countries, whose overall purpose was to promote international trade by reducing or eliminating trade barriers such as tariffs or quotas. According to its preamble, its purpose was the "substantial reduction of tariffs and other trade barriers and the elimination of preferences, on a reciprocal and mutually advantageous basis."
The economy of Mexico is the 15th largest in the world in nominal terms and the 11th largest by purchasing power parity, according to the International Monetary Fund. Since the 1994 crisis, administrations have improved the country's macroeconomic fundamentals. Mexico was not significantly influenced by the 2002 South American crisis, and maintained positive, although low, rates of growth after a brief period of stagnation in 2001. However, Mexico was one of the Latin American nations most affected by the 2008 recession with its Gross Domestic Product contracting by more than 6% in that year.
Nigeria is a middle-income, mixed economy and emerging market, with expanding manufacturing, financial, service, communications, technology and entertainment sectors. It is ranked as the 27th-largest economy in the world in terms of nominal GDP, and the 22nd-largest in terms of purchasing power parity. It is the largest economy in Africa; its re-emergent manufacturing sector became the largest on the continent in 2013, and it produces a large proportion of goods and services for the West African subcontinent. In addition, the debt-to-GDP ratio is 11 percent, which is 8 percent below the 2012 ratio.
Free trade is a trade policy that does not restrict imports or exports; it can also be understood as the free market idea applied to international trade. In government, free trade is predominantly advocated by political parties that hold liberal economic positions while economically left-wing and nationalist political parties generally support protectionism, the opposite of free trade.
The phenomenon of the female homicides in Ciudad Juárez, called in Spanish feminicidio ("feminicide") involves the violent deaths of hundreds of women and girls since 1993 in the northern Mexican region of Ciudad Juárez, Chihuahua, a border city across the Rio Grande from the U.S. city of El Paso, Texas. As of February 27, 2005, the number of murdered women in Ciudad Juárez since 1993 is estimated to be more than 370.
The Mexican peso crisis was a currency crisis sparked by the Mexican government's sudden devaluation of the peso against the U.S. dollar in December 1994, which became one of the first international financial crises ignited by capital flight.
The economy of North America comprises more than 579 million people in its 23 sovereign states and 15 dependent territories. It is marked by a sharp division between the predominantly English speaking countries of Canada and the United States, which are among the wealthiest and most developed nations in the world, and countries of Central America and the Caribbean in the former Latin America that are less developed. Mexico and Caribbean nations of the Commonwealth of Nations are between the economic extremes of the development of North America.
The economic policies of Bill Clinton, referred to by some as Clintonomics, encapsulates the economic policies of United States President Bill Clinton that were implemented during his presidency, which lasted from January 1993–January 2001.
The G-3 was a free trade agreement between Colombia, Mexico, and Venezuela that came into effect on January 1, 1995, which created an extended market of 149 million consumers with a combined GDP of US$486.5 billion. The agreement states a ten percent tariff reduction over ten years for the trade of goods and services among its members. The agreement is a third generation one, not limited to liberalizing trade, but includes issues such as investment, services, government purchases, regulations to fight unfair competition, and intellectual property rights.
This article was written in 2008 with partial updates at later dates, including most recently in 2011. Please update it further.
The term Mexican miracle is used in common speech, but not by economists, to refer to the country's inward-looking development strategy that produced sustained economic growth of 3 to 4 percent and modest 3 percent inflation annually from the 1940s until the 1970s.
North American Free Trade Agreement's impact on United States employment has been the object of ongoing debate since the 1994 inception of the North American Free Trade Agreement (NAFTA) with Canada and Mexico. NAFTA's proponents believe that more jobs were ultimately created in the USA. Opponents see the agreements as having been costly to well-paying American jobs.
The U.S. Sugar program is the federal commodity support program that maintains a minimum price for sugar, authorized by the 2002 farm bill to cover the 2002-2007 crops of sugar beets and sugarcane.
Beginning early in the 20th century, Monterrey, Mexico began a successful economic metamorphosis and growth pattern that remains an exception in Mexico. This all began with increased investments in irrigation that fueled a boom in agriculture and ranching for this northern Mexican city. The economic growth has fueled income disparity for the 3.86 million residents who live in the Monterrey Metro area (MMA). In addition, the rapid urbanization has taken a large toll on the water resources. In addressing many of this challenges, the city of Monterrey has become a model for sound and effective Integrated urban water management.
Gender inequality can be found in various areas of Salvadoran life such as employment, health, education, political participation, and family life. Although women in El Salvador enjoy equal protection under the law, they are often at a disadvantage relative to their male counterparts. In the area of politics, women have the same rights as men, but the percentage of women in office compared to men is low. Though much progress has been made since the Salvadoran Civil War ended in 1992, women in El Salvador still face gender inequality.
Protective tariffs are tariffs that are enacted with the aim of protecting a domestic industry. They aim to make imported goods cost more than equivalent goods produced domestically, thereby causing sales of domestically produced goods to rise; supporting local industry. Tariffs are also imposed in order to raise government revenue, or to reduce an undesirable activity. Although a tariff can simultaneously protect domestic industry and earn government revenue, the goals of protection and revenue maximization suggest different tariff rates, entailing a tradeoff between the two aims.
The Agreement between the United States of America, the United Mexican States, and Canada is a signed but not ratified free trade agreement between Canada, Mexico, and the United States. It is referred to differently by each signatory—in the United States, it is called the United States–Mexico–Canada Agreement (USMCA); in Canada, it is officially known as the Canada–United States–Mexico Agreement (CUSMA) in English and the Accord Canada–États-Unis–Mexique (ACEUM) in French; and in Mexico, it is called the Tratado entre México, Estados Unidos y Canadá (T-MEC). The agreement is sometimes referred to as "New NAFTA" in reference to the previous trilateral agreement it is meant to supersede, the North American Free Trade Agreement (NAFTA).
Brooms manufactured from broomcorn became specifically subject to an increase in US import tariffs in 1996. In response to the US action, chief exporter of broomcorn brooms Mexico requested dispute settlement from an arbitration tribunal of NAFTA, which eventually decided in Mexico's favor. It was one of only three cases to be decided under the provisions of Chapter 20 of NAFTA.