Skip to main content

10 Things to Know About NAFTA

By U.S. News & World Report

1. The North American Free Trade Agreement prevents barriers and sets standards for trade between the U.S., Mexico and Canada. The pact was signed into law by Bill Clinton in 1993, but negotiations occurred during the last years of the George H.W. Bush administration. Free trade between the U.S. and Canada dates back to 1989, and Canada piggybacked on what was to be a similar deal between the U.S. and Mexico.

2. Trade of goods among NAFTA partners accounted for about a quarter of total U.S. trade in 2015, according to Census data, and exports and imports among the three nations have nearly tripled in the 23 years since the agreement took effect.

3. In preparation for the renegotiation, each of the three partner nations released documents outlining priorities and key objectives. Canada’s focus is modernization, including a more competitive technology sector and progressive measures like addressing climate change and gender equality. Ottawa also wants to maintain independent panels to resolve trade disputes. Priorities for Mexico include maintaining equal standing in a partnership that has been key to national economic well-being. An 18-page document from the office of the United States Trade Representative outlines goals that center on reducing U.S. trade deficit with partners and maintaining economic opportunity for Americans.

4. A third of manufacturing jobs have been lost since NAFTA went into effect, according to data from the Bureau of Labor Statistics. Despite President Donald Trump’s campaign promises to the Rust Belt, though, problems in the U.S. manufacturing industry do not all stem from what he has called ” the worst trade deal in the history of the world.” Significant manufacturing job loss occurred after China joined the World Trade Organization in 2001 and during the Great Recession between 2008 and 2009.

5. According to a joint government website, nearly 40 million jobs were created by NAFTA in the first 15 years, with 25 million of them in the U.S.

6. Americans have the most negative view of NAFTA, according to a Pew Research Center survey. But more than half of survey respondents in the U.S., Canada and Mexico said that the trade agreement has been a “good thing” for their country.

7. The largest trade deficit that the U.S. has with Mexico is in the transportation industry. Bringing production back to the U.S., where labor, material and factory costs are higher, could raise the price of American cars and make them less competitive in the international market. Other sectors with trade deficits that could see similar effects are computers and oil and gas.

8. Trump may focus his NAFTA woes on Mexico, but Canada is the trade partner that has received the most complaints. According to CNN, 35 complaints have been brought against Canada since the pact was first signed, compared to 22 against Mexico and 20 against the U.S.

9. According to Bloomberg, chief negotiators for the U.S. include Commerce Secretary Wilbur Ross, Trade Representative Robert Lighthizer and Assistant Trade Representative John Melle. Joining this group in Washington from Mexico are Economy Minister Ildefonso Guajardo, Foreign Minister Luis Videgaray and Chief Technical Negotiator Kenneth Smith Ramos and from Canada are Foreign Affairs Minister Chrystia Freeland, Ambassador David MacNaughton and former Prime Minister Brian Mulroney.

10. A simple clause in the NAFTA document allows any party to withdrawal with written notice to other parties. Trump can sign a new agreement before Congress reviews, but it is likely that negotiations will last well into 2018.

More from U.S. News

Canada Seeks Fairness on NAFTA Trade Deals

U.S. Investors Have a Lot Riding on NAFTA Negotiations

As Donald Trump Signs TPP Death Warrant, Partisan Lines Crossed

10 Things to Know About NAFTA originally appeared on usnews.com

Don’t Settle for Student Loans to Pay for Online Education

By WTOP Staff
Online college programs are becoming a more popular choice for prospective students, with one study finding that more than 6 million students enrolled in at least one online course in fall 2015. The popularity of these courses can be attributed in part to their flexibility with working adults' schedules, students' ability to progress more quickly through online programs and, oftentimes, cheaper tuition. [See 10 low-cost online bachelor's programs for out-of-state students.]Online degrees can be beneficial to many college students, but some studies have shown online learners complete their programs at lower rates than students at traditional brick-and-mortar campuses. Individuals with student loans but no degree comprise two-thirds of defaulted borrowers. Though these numbers are not encouraging, just like for traditional programs, there are ways to reduce how much you'll need to borrow for an online program to ensure you won't become one of these statistics. Don't just settle on borrowing student loans to cover the whole cost of your program and living expenses. Instead, start thinking about how to cut costs and cover your balance in different ways, such as the following. -- Grants and scholarships: Even though you are taking an online course, you can still apply and receive grants and scholarships. But your first step should be to complete the Free Application for Federal Student Aid, commonly referred to as the FAFSA, which will allow you to receive a Pell Grant if your expected family contribution is low enough. The EFC criteria and award amounts are adjusted annually, but the 2017-2018 academic year awards range from $606 to $5,920, which could significantly lower the amount you borrow annually. Your next step is to apply for scholarships. You can start by checking online scholarship search engines, such as the Salt Scholarship Search, College Board's BigFuture and Peterson's. But don't forget to take advantage of local organizations and your school's financial aid office. Both may offer scholarships that you can't find with a national scholarship search. [Review these 10 sites to kick off your scholarship search.]For instance, organizations like the Elks Club, Knights of Columbus or the Rotary Club typically offer scholarships annually to local students. Just because you're going to school online doesn't mean you're ineligible. Visit your local library for scholarship listings, and ask around town. You might be surprised how many local organizations offer scholarships. While these scholarships typically aren't large, every little bit counts. Each dollar you receive in a scholarship is a dollar you don't have to borrow and pay interest on. -- Work-study: Another option for online students may be work-study awards. Not all students enrolled in online programs are eligible, but students at some schools -- including, for example, SUNY Empire State College and Liberty University -- are. Work-study awards are not given upfront like scholarships and grants. In most cases, they are an offer to earn up to the awarded amount if you secure an eligible work-study job. While there is a misconception that all work-study jobs must be on campus, students can work for off-campus, nonprofit or public employers as long as the work is in the public's interest. You may be able to work for a for-profit employer if the job is relevant to your course of study. No matter who the outside employer is, it will need to have an established agreement with your college for you to receive work-study funds. Remember, to be eligible for federal financial aid, you must be enrolled and pursuing a degree or certificate. If you're not working toward a credential, Pell Grants and work-study won't be option, but you may still be able to take advantage of private scholarships -- just be sure to read the eligibility criteria carefully. [Explore what to know about financial aid in online programs.]-- Pay as you go: One of the great benefits to enrolling online is the flexible schedule, which can allow you to complete your college coursework around your responsibilities. But prospective students often overlook using their part- or full-time job earnings as an option for paying for college. Almost 80 percent of college students in 2015 worked at least part time while attending classes, according to the National Center for Education Statistics. By budgeting and thinking strategically about your college costs, you can likely reduce your dependence on student loans by paying a portion out of pocket. Many -- but not all -- online programs are less expensive than traditional programs and often have shorter payment periods. Six, eight or 10 weeks are common course durations. Because of the frequency of payments in an online setting, you may be well-placed to pay as you go and possibly avoid borrowing altogether. Attending college online and avoiding student loans may be challenging, but if you are willing to put in the effort, you can limit the amount you need to borrow. More from U.S. News Q&A: Understanding Student Loan Discharge Eligibility Student Loan Refinancing Isn't Right for All Borrowers
Read Next Story

Related News

Frustration grows in Venezuela as earthquake death toll reaches 1,430

Israel and Lebanon sign framework agreement with US in ‘first step’ toward peace, Rubio says

Trump-endorsed populist poised to become Colombia’s next president as rival challenges vote