
20th Century Review 2 9/18
North American Free Trade Agreement (NAFTA)- Approved 1993 by Congress. World’s largest free trade area, includes the Unites States, Canada, and Mexico.
General Agreement on Tariffs and Trade 1947 (GATT)- Created WTO 1994; established a code of conduct for trading nations. Was designed to provide an international forum that encouraged free trade between member states. Regulated and reduced tariffs.
World Trade Organization (WTO)- Created by GATT 1994. Eliminated lots of import tariffs, phased out quota system, and established new global body. Settles trade disputes. 1999 Seattle, WA, protesters rioted over policy. 144 members. Some say aids only big companies.
- American dependence on foreign oil is deemed to be a security and economic risk.
- Free trade strengthens US, even with abuse
- Trading makes for a faster- growing economy
- Protectionism is raising tariffs so consumers buy their own country’s products.
- Free trade is rare
- The last trade war was in the 1930s. The Hawley- Smoot tariff of 1930 worsened the Great Depression.
European Community (EC)- Six West European nations coordinated trade policy 1957
European Union (EU)- EC changed its name 1993
European Monetary Union (EMU)- January 2002 12 European nations united under one currency, the Euro. 1/6 world’s economy. Promotes trade and aggressive competition
Monetary policy- 1944 Bretton Woods, NH, 44 W nations fixed exchange rates set to the US $. In 1971 a floating exchange system was developed.
1947, 23 non- communist nations signed GATT
Trade liberalization helped an estimated 3 billion people out of poverty (WTO estimate). Some people say it only benefits big companies
International Trade 9/22
Globalization- The spread of free- market economies and trade liberalization to nearly every nation
- 44 million Americans have no health insurance (1/7)
- 200 richest people in the world have over $1 trillion
- 1.3 billion people live on less than a dollar a day
9/25
Trade defecit- occurs when a country imports more than it exports ($346.3 billion 2001)
Reasons:
1. Other countries limit US goods in their markets
2. US consumers buy more foreign- made goods
3. Strong economy demands imported goods
Free trade- 1990s, US government expanded trade. US has free trade with Israel, Jordan, Canada, and Mexico
NAFTA- 1/1/94- North American Free Trade Agreement. World’s largest free trade area. US Potential goal: Free Trade of the Americas (Would include 34 democracies)
As of 2001 China was given PNTR (Permanent Normal Trading Relations) despite human rights violations
Currant Issues
· Trading is for economic improvement
· Unemployment is an economic health indicator (2001 was 4.2%, post 9/11 was 5.8%)
· Free trade takes US factory jobs to Mexico, etc. but creates high-skill jobs
· After 9/11 US Customs Service regulated US exports closely (weapons, etc.)
· The International Intellectual Property Alliance (IIPA) says that $7.9 billion worth of stuff has been copied by foreign companies, especially Ukraine, which was sanctioned in 2001
· US is dependant on crude oil imports from the Mid-east.
- US uses ¼ world’s energy but only owns 3%
- There will be a 35% increase in oil need over the next 20 years
- ½ the US trade defecit is for oil
9/26
Uruguay Round- Part of GATT: provided an international forum to discuss trade issues and trade arguments
10/7
Globalization- The spread of free- market economies and trade liberalization to nearly every nation
Tariff- Tax on imports
Protectionism- Where countries impose tariffs on imports in order to protect their own economic industries
10/8 Comparative Advantage- Allows countries to profit by trading the goods and services it is most efficiently able to produce (for US, agriculture)
Trade Defecit- Occurs when a country imports more than it exports
Trade War- Occurs when a nation raises tariffs on a nation and the nation affected by the tariffs responds by imposing tariffs of its own
Fast Track- A policy that allows the President to negotiate international trade deals that are subject to only an up or down vote in Congress (Since 1980s)
Floating Exchange System- System where values of currencies relative to each other are able to change daily (since 1971)
Arctic National Wildlife Refuge- A federally protected wildlife area that is believed to be located on a large oil field
Countries known to possess nuclear weapons:
1. China
2. France
3. Great Britain
4. India
5. Israel
6. North Korea (not yet proven)
7. Pakistan
8. Russia
9. United States
ABM Treaty- Anti- Ballistic Missile Treaty with USSR. Banned space-, air-, sea-, and mobile land- based ABMs 1972. US announced withdrawal 2001
Axis of Evil- North Korea, Iraq, and Iran
Baruch Plan-1946
- a proposal to UN that an international agency control all nuclear technology and materials
- Vetoed by Soviet Union (Post WWII)
- Proposed that atomic energy only be used for peaceful purposes (power)
- Became obsolete when Russia made nuke bomb
- Wanted to get rid of all nuclear weapons and weapons adaptable to mass destruction
- Created International Atomic Development Authority (go to Iran 10/31)
Biological Weapons Convention- 1972, US and USSR signed; agreed not to develop, acquire, or stockpile germs for offensive purposes (loopholes)
Chemical Weapons Convention- 1993- bans use, production, and stockpiling of chemical weapons (loopholes) US and Russia didn’t sign
Comprehensive Test Ban Treaty- 1996- 50+ UN members. Stop all nuclear testing. US refuses to join, although our last test was in 1992
Mutual Assured Destruction (MAD)- Belief that the only way to avoid nuclear war was to make consequences too devastating for either nation to launch a first strike. Occurred between the US and USSR during the Cold War. Led to stockpiling of 7-8,000 warheads each
Nuclear Nonproliferation Act 1978- denies nuclear technology to countries suspected of developing nuclear weapons
Ottawa Convention- “Mine Ban Treaty”- 1999-142 members- Prohibits use, stockpiling, production and transfer of anti- personnel landmines. US and Russia haven’t signed. Was initiated by civilian casualties. There are 60 to 70 million unexploded landmines.
START I- Strategic Arms Reduction Treaty-1991-US and Russia agreed to gradually reduce nuclear arsenal
START II- Jan. 1993- Belarus and Kasakhstan give nukes to Russia, Ukraine deactivates theirs. Russia ratified April 2000. US and Russia agreed over next 6 years to go from 6,000 to 3,500-3,00 warheads. May 2002 Bush and Putin agreed to 1700-2200
UN Nuclear Nonproliferation Treaty (NPT)- 1968- Gave non- nuclear signatories access to nuclear technology as long as they didn’t make weapons. US, USSR, Great Britain agreed to reduce nuclear arsenals and not aid others in bomb- making. 187 members as of 2000.
Limited Test Ban Treaty- 1963- illegal to test nuclear weapons in atmosphere, outer space, and underwater
10/14
Weapons of mass destruction- have capability of killing hundreds of thousands of people
Conventional weapons- kill only a few at a time
3 types of weapons of mass destruction
1. Nuclear weapons- 1945
2. Chemical weapons- Second made- mustard gas, etc.
3. Biological weapons- first used during the plague- infected carcasses thrown over fortresses
Kamikaze- divine wind
10/15
128,000+ nuclear weapons have been produced since 1945. 77,000 US, 55,000 Russia
Trinity explosion, New Mexico, July 16 1945
- First explosion of nuclear weaponry
- Einstein told the US Germany was developing atomic weapons, which is why we began studying. Einstein was a German Jew
The US dropped nuclear bombs on Hiroshima and Nagasaki to avoid the necessity of invading Japan, which would have cost ½ to a million US lives
The US has spent $3.5 trillion between 1940-1995 to fight nuclear war
Cold War
- Power struggle between US and USSR (taking over Africa, Asia, S. America)
- Nuclear Arms race
- Led to large buildups of conventional, biological and chemical weapons
Economies depend on $ from weapons sales. It is a $37 billion industry.
10/24 Countries believed to possess chemical weapons:
1. Russia: most chemical weapons 2. Unites States: Second most 3. China 4. Libya 5. Israel 6. Iran 7. Iraq 8. Taiwan 9. North Korea 10. South Korea
Types of Chemical Weapons: Blood, Nerve, Riot Control, Choking, and Blistering Agents
10/27/03
Yucca Mountain- Potential storage site for nuclear waste. Pro view: would make the waste easier to protect, we’d know the amount, low population in that area, dry (no corrosion on containers). Con view: groundwater, transporting, hijacking.