International International OrganizationsOrganizations

Multi-national groups created for an economic purpose

NAFTA NAFTA

Became policy on January 1, 1994

Agreement between United States, Canada and Mexico

Primary focus is on trade

NAFTA - PurposeNAFTA - 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 - NAFTA - OverviewOverviewThe primary function of NAFTA is to eliminate barriers to trade on this continent. Ideally, it expands the available market for domestic products.

EU – European UnionEU – 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

http://europa.eu/about-eu/countries/member-countries/index_en.htm

EU - PurposesEU - 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 - IMFInternational Monetary Fund - IMF

Established in 1945Made up of 188

member nations◦Same as the United

NationsIs essentially a

component of the United Nations

Focus is on global economic stability

IMF - PurposeIMF - 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

IMF - FunctionsIMF - Functions

World Bank - WBWorld 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 - PurposeWorld 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

World

Ban

kW

orld

Ban

kA

reas o

f curre

nt p

roje

cts

World Trade Organization - WTOWorld Trade Organization - WTO

Established in 1995

Has 153 member countries

Focus is on the development and expansion of international trade

WTO - PurposeWTO - 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

WTOWTO

Organization of Petroleum Organization of Petroleum Exporting Countries - OPECExporting 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 - PurposeOPEC - 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

OPECOPECGlobal production of Petroleum