Economy of North America

The economy of North America comprises more than 579 million people (8% of the world population) 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.

Mexico lies in between these two extremes as a newly industrialized country (NIC), and is a part of the North American Free Trade Agreement (NAFTA) and a member of the Organisation for Economic Co-operation and Development (OECD), being one of the only two Latin American members of this organisation (together with Chile). The United States is by far the largest economy in North America and the largest national economy in the world.

The US, Canada and Mexico have significant and multifaceted economic systems.[4] In 2011, the US has an estimated per capita gross domestic product (PPP) of $47,200, and is the most technologically developed economy in North America.[4] The United States' services sector comprises 76.7% of the country's GDP (estimated in 2010), industry comprises 22.2% and agriculture comprises 1.2%.[4]

Canada's economic trends are similar to that of the United States, with significant growth in the sectors of services, mining and manufacturing.[5] Canada's GDP (PPP) was estimated at $39,400 in 2010.[5] Canada's services sector comprises 78% of the country's GDP (estimated in 2010), industry comprises 20% and agriculture comprises 2%.[5]

Mexico has a GDP (PPP) of $15,312, and per capital income is estimated at approximately one-third of the United States'.[6] The country has both modern and outdated industrial and agricultural facilities and operations,[6] and is modernizing in sectors such as energy production, telecommunications and airports.[6]

Economy of North America
Statistics
Population579 million (2016)
GDP$22.2 trillion (Nominal; 2017)[1]
$23.7 trillion (PPP; 2017)[1]
GDP growth
2.3% (2017)[1]
GDP per capita
$45,560 (2017; 2nd)[2]
15.7 million (2016)[3]
Unemployment10%
Top 10% income
32.9%
During 2003 unless otherwise stated. Most numbers are from the UNDP from 2002, some numbers exclude certain countries for lack

All values, unless otherwise stated, are in US dollars.

Economic development

Great Depression

The Great Depression began in North America in October 1929. The start is often dated to the stock market collapse of Black Tuesday although this was not the cause of the Great Depression.[7] Canada and the United States experienced especially large declines, with the gross domestic product falling 37% from 1929 to 1933 in the United States, and 43% in Canada over the same period.[8] The economy reached its lowest point in 1933, however recovery was slow. The outbreak of World War II in 1939 created demand for war materials that brought about the end of the depression.

The Great Depression spurred increased government intervention in the economy in North America. The United States introduced unemployment insurance, a minimum wage and standardised working hours under the New Deal.[9] Canada introduced similar measures.[10] Mexico nationalised some key industries during the Great Depression, with the railroads nationalised by 1937 and the oil industry nationalised in 1938.[11]

World War II

The large scale enlistment of men into armed forces during World War II women entered the workforce en masse, filling many jobs in manufacturing and technical areas that had previously been closed to women. This led to the "We can do it!" campaign.[12] The economic output in North America increased substantially, with unemployment practically eliminated in the United States.[13] Rationing severely reduced the availability of consumer goods, with the increase in industrial production coming from the demand for war materials. During the peak of World War II activity, nearly 40 per cent of US GDP was devoted to war production.[14]

US-Canada Free Trade Agreement and NAFTA - a new era of economic integration

The Canada-United States Free Trade Agreement of 1989 and the subsequent expansion to the North American Free Trade Agreement (NAFTA) triggered a dramatic increase in trade between these three countries, with Mexican trade with the United States and Canada increasing threefold.[15] Over 85% of Canadian exports in 2006 went to the United States.[16]

Regional variation

With various climate zones, agricultural products vary from country to country. Job sectors are also different, with industrialized countries having more service workers, and developing countries relling on agriculture.

Trade blocs

Asia-Pacific Economic Cooperation

The Asia-Pacific Economic Cooperation (APEC) is a group of Pacific Rim countries which meet with the purpose of improving economic and political ties. APEC's stated goals are aimed at free and open trade and investments by cutting tariffs between zero and five percent in the Asia-Pacific area for industrialised economies by 2010 and for developing economies by 2020.

The organisation has members from four continents, those from North America are Canada, Mexico and the United States.

Caribbean Community

The Caribbean Community (CARICOM) was created "To provide dynamic leadership and service, in partnership with Community institutions and Groups, toward the attainment of a viable, internationally competitive and sustainable Community, with improved quality of life for all". Its secretariat is based in Georgetown, Guyana, South America.

- On January 1, 2006 six members: (Barbados, Belize, Guyana, Jamaica, Suriname and Trinidad and Tobago) unofficially ushered in the Caribbean (CARICOM) Single Market and Economy (CSME).

- At the official signing of the protocol on January 30, 2006 in Jamaica, A further six members: (Antigua and Barbuda, Dominica, Grenada, Saint Kitts and Nevis, Saint Lucia and Saint Vincent and the Grenadines) announced their intention to join by the second quarter of 2006. Montserrat, a British Oversees territory is awaiting approval by the United Kingdom. Haiti and the Bahamas have no immediate plans to join.

Central American Free Trade Agreement

The Central American Free Trade Agreement (CAFTA) is an agreement between the United States and the Central American countries of Costa Rica, Guatemala, El Salvador, Honduras, and Nicaragua. The treaty is aimed at promoting free trade between its members. Canada and Mexico are negotiating membership.

North American Free Trade Agreement

The North American Free Trade Agreement (NAFTA) is an agreement between Canada, Mexico and the United States to eliminate tariffs on goods traded between themselves.

Although currently only a trade agreement, with no supranational bodies or laws as in the European Union, there have been various proposals to move towards a customs union or a North American currency union. It is unknown whether this may eventually develop into a North American Union similar to that of Europe.

Currency

Below is a list of the currencies of North America, with exchange rates between each currency and both the euro and US dollars as of 12 April 2008. This list may vary as it is not current.

Country Currency worth in euro worth in USD Central bank
Antigua and Barbuda EC dollar 0.24 0.38 Eastern Caribbean Central Bank
Bahamas Bahamian dollar 0.63 1.00 Central Bank of the Bahamas
Barbados Barbadian dollar 0.32 0.50 Central Bank of Barbados
Belize Belizean dollar 0.32 0.51 Central Bank of Belize
Canada Canadian dollar 0.62 0.98 Bank of Canada
Costa Rica Colón 0.001 0.002 Central Bank of Costa Rica
Cuba Cuban convertible peso 0.847 1.08 Central Bank of Cuba
Cuban peso 0.030 0.038
Dominica EC dollar 0.24 0.38 Eastern Caribbean Central Bank
Dominican Republic Dominican Republic Peso 0.02 0.03 Central Bank of the Dominican Republic
El Salvador US dollar 0.63 1.00 Central Reserve Bank of El Salvador
Greenland Danish krone 0.13 0.19 Danmarks Nationalbank
Grenada EC dollar 0.24 0.38 Eastern Caribbean Central Bank
Guatemala Quetzal 0.08 0.13 Bank of Guatemala
Haiti Gourde 0.02 0.03 Central Bank of Haiti
Honduras Lempira 0.03 0.05 Central Bank of Honduras
Jamaica Jamaican dollar 0.009 0.01 Bank of Jamaica
Mexico Mexican peso 0.06 0.09 Bank of Mexico
Nicaragua Córdoba 0.03 0.05 Central Bank of Nicaragua
Panama Balboa 0.63 1.00 National Bank of Panama
Saint Kitts and Nevis EC dollar 0.24 0.38 Eastern Caribbean Central Bank
Saint Lucia EC dollar 0.24 0.38 Eastern Caribbean Central Bank
Saint Vincent and the Grenadines EC dollar 0.24 0.38 Eastern Caribbean Central Bank
Trinidad and Tobago Trinidad and Tobago dollar 0.10 0.16 Central Bank of Trinidad and Tobago
United States US dollar 0.75 1.00 Federal Reserve System

Table correct as of 12 April 2008

Economic sectors

Agriculture

Agriculture is very important in Central American and Caribbean nations. In western Canada, in the provinces of Saskatchewan, Alberta, British Columbia and Manitoba, wheat and other various main agricultural products are grown. The U.S. also has many states with significant agriculture production, mainly in the central continental U.S. Mexico produces many tropical fruits and vegetables as well as edible animals.

Manufacturing

North America has developed and its manufacturing sector has grown. In the beginning the European nations were the large manufacturing powers. At the start of the 1950s, the United States was a top manufacturing power, with Canada and Mexico also making significant progress.

Service

In Canada, the US and the Caribbean, service-based employment is a significant percentage of overall employment. Many people work in stores and other retail locations. In Canada more than 70% work in the services sector, with a similar percentage in the United States.

Investment and banking

The United States leads North America in investment and banking. Canada, Mexico and most recently, February 2011, El Salvador is growing in this sector. And smaller economic powers such as Guatemala, Honduras, Costa Rica, and Panama are also growing slowly in this sector.

Tourism

Tourism is extremely important for the Caribbean economies, as they contain many beaches and have warm climates. Skiing in Canada and the US is also important. Tourism of national parks and natural landmarks, such as Mount Rushmore and the Grand Canyon in the United States, and Niagara Falls and Moraine lake in Canada, contribute to the economy in these regions.

See also

Statistics:

References

  1. ^ a b c "GDP Nominal and PPP Data, current prices". International Monetary Fund. 2018. Retrieved 6 March 2018.
  2. ^ International Monetary Fund (October 2016). "List of North American countries by GDP per capita". World Economic Outlook. International Monetary Fund. Archived from the original on 24 September 2017. Retrieved 22 February 2017.CS1 maint: BOT: original-url status unknown (link)
  3. ^ Asian Millionaires Outnumber Those in North America, Report Says
  4. ^ a b c "United States, Economy. U.S. Central Intelligence Agence. Accessed June 2011.
  5. ^ a b c "Canada, Economy. U.S. Central Intelligence Agence. Accessed June 2011.
  6. ^ a b c "Mexico, Economy. U.S. Central Intelligence Agence. Accessed June 2011.
  7. ^ "Outline of the U.S. Economy". U.S. Department of State. Archived from the original on 14 March 2007.
  8. ^ "The Great Depression (1929-1939): historical context, economic impact and related links". Government of Canada. Archived from the original on 27 January 2009.
  9. ^ "U.S. Department of Labor -- Brief History of DOL - The Department in the New Deal and World War II, 1933-1945". U.S. Department of Labor.
  10. ^ "Unemployment Insurance Act (1941): historical context, economic impact and related links". Government of Canada.
  11. ^ Clayton R Koppes (June 1982). "The Good Neighbor Policy and the Nationalization of Mexican Oil: A Reinterpretation". The Journal of American History. The Journal of American History. 69 (1): 62–81. doi:10.2307/1887752. JSTOR 1887752.
  12. ^ "American Experience | Tupperware! | Women and Work". Public Broadcasting Service.
  13. ^ "The National World War II Museum, New Orleans". The National World War II Museum.
  14. ^ Baten, Jörg (2016). A History of the Global Economy. From 1500 to the Present. Cambridge University Press. p. 98. ISBN 9781107507180.
  15. ^ "CIA - The World Factbook -- Mexico". Central Intelligence Agency.
  16. ^ "CIA - The World Factbook -- Canada". Central Intelligence Agency.
Belize–Guatemala Partial Scope Agreement

The Belize–Guatemala Partial Scope Agreement is a preferential trade agreement between the counties of Belize and Guatemala. Negotiations for the agreement began on November 22, 2004. Both countries signed the agreement on June 26, 2006. Belize ratified the agreement in 2009 and Guatemala ratified it in 2010. The agreement came into effect on April 4, 2010, thirty days after Guatemalan ratification.

Economy of America

"Economy of America" or "American Economy" may refer to:

Economy of the United StatesIt may also refer to:

Economy of North America, comprises the economies of all sovereign countries geographically located in North America, Central America, and the Caribbean.

Economy of South America, comprises the economies of all sovereign countries geographically located in South America.

Great Recession in the Americas

North America was one of the focal points of the global, Great Recession. While Canada has managed to return its economy nearly to the levels it enjoyed prior to the recession, the United States and Mexico are still under the influence of the worldwide economic slowdown. The cost of staple items dropped dramatically in the United States as a result of the recession.

Independent Task Force on North America

The Independent Task Force on the Future of North America advocates a greater economic and social integration between Canada, Mexico, and the United States as a region. It is a group of prominent business, political and academic leaders from the U.S., Canada and Mexico organized and sponsored by the Council on Foreign Relations (U.S.), the Canadian Council of Chief Executives, and the Mexican Council on Foreign Relations. It was co-chaired by former Canadian Deputy Prime Minister and Minister of Finance, John Manley, former Finance Minister of Mexico, Pedro Aspe, and former Governor of Massachusetts and Assistant U.S. Attorney General William F. Weld.

It was launched in October 2004 and published Task Force Report #53 entitled, Building a North American Community (May 2005). As well as it accompanying Chairmen’s Statement, Creating a North American Community (March 2005). A press release called Trinational Call for a North American Economic and Security Community by 2010 preceded the publications on March 14, 2005.

The final report proposed increased international cooperation between the nations of Canada, the United States, and Mexico, similar in some respects to that of the European Community that preceded the European Union (EU). As this report states, "The Task Force's central recommendation is establishment by 2010 of a North American economic and security community, the boundaries of which would be defined by a common external tariff and an outer security perimeter."

List of American countries by monthly average wage

This is the map and list of American countries by monthly net (after taxes) average wage. The chart below reflects the average (mean) wage as reported by various data providers. The salary distribution is right-skewed, therefore more than 50% of people earn less than the average net salary. These figures have been shrinked after the application of the income tax. In certain countries, actual incomes may exceed those listed in the table due to the existence of grey economies. In some countries, social security, contributions for pensions, public schools, and health are included in these taxes.

The countries in purple on the map have net average salary in excess of $ 2,000 and in blue –in the range of $ 1,000 to $ 1,999, in green - in the range of $ 600 to $ 999, in yellow - in the range of $ 300 to $ 599, and in red below $ 300.

USA's net wage is calculated without state's taxes

List of North American countries by GDP (PPP)

This is a list of North American nations ranked by Gross Domestic Product (GDP) at Purchasing Power Parity (PPP). Figures are given in 2016 International Dollars according to International Monetary Fund 2016 figures.

List of North American countries by GDP (PPP) per capita

This is a list of North American nations by GDP per capita. All figures are based on the gross domestic product (at purchasing power parity) per capita, i.e., the purchasing power parity (PPP) value of all final goods and services produced within a country in a given year, divided by the average (or mid-year) population for the same year. The figures given are in international dollars and rounded to the nearest hundred. Names of dependent territories (not sovereign states) are in italics and are not ranked.

List of North American countries by GDP (nominal)

Gross domestic product (GDP) is the market value of all final goods and services from a nation in a given year. Countries in North America are sorted by nominal GDP estimates based on 2018 data from the World Economic Outlook by the International Monetary Fund.The figures presented here do not take into account differences in the cost of living in different countries, and the results can vary greatly from one year to another based on fluctuations in the exchange rates of the country's currency. Such fluctuations may change a country's ranking from one year to the next, even though they often make little or no difference to the standard of living of its population. Therefore, these figures should be used with caution.

Some countries/regions may have citizens which are on average wealthy. These countries/regions could appear in this list as having a small GDP. This would be because the country/region listed has a small population, and therefore small total economy; the GDP is calculated as the population times market value of the goods and services produced per person in the country.Comparisons of national wealth are also frequently made on the basis of purchasing power parity (PPP), to adjust for differences in the cost of living in different countries. PPP largely removes the exchange rate problem, but has its own drawbacks; it does not reflect the value of economic output in international trade, and it also requires more estimation than nominal GDP. On the whole, PPP per capita figures are more narrowly spread than nominal GDP per capita figures.

List of North American countries by GDP (nominal) per capita

This is a list of North American nations ranked by Gross Domestic Product (GDP) per capita in nominal terms, which are calculated at market or government official exchange rates. The figures provided are 2017 estimates from the IMF

Mesoamerican region

The Mesoamerican region (often abbreviated MAR) is a trans-national economic region in the Americas that is recognized by the OECD and other economic and developmental organizations, comprising the united economies of the seven countries in Central America — Belize, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, and Panama — plus nine southeastern states of Mexico — Campeche, Chiapas, Guerrero, Oaxaca, Puebla, Quintana Roo, Tabasco, Veracruz, and Yucatán.Designated as an 'economic territory' by the OECD, the identification of the Mesoamerican region as a focus for common regional economic development has been observed since the adoption in 2001 by the signatory countries of the Puebla-Panama Plan (PPP), an initiative intended to foster regional integration and development across southeastern Mexico and the countries of Central America. The PPP also includes the country of Colombia; other than this, the territory and governments involved with the PPP are the same as those covered by OECD's Mesoamerican region.

Situated within the wider region of Middle America (on the tapering isthmus of southern North America), the geographical region defined by the MAR loosely correlates with that of Mesoamerica, the pre-Columbian culture area defined and identified by archaeologists, anthropologists, linguists and ethnohistorians. For several thousand years prior to the European colonization of the Americas beginning in the early 16th century, the diverse cultures and civilizations of Mesoamerica also shared in common a number of broad cultural, historical and linguistic traits. The modern-day indigenous populations who are the descendants of pre-Columbian cultures number roughly over 11 million people (approx. 17.2% of total regional population) spread across the MAR economic territory, and are largely among the most disadvantaged and marginalized groups in the region.

North American Competitiveness Council

The North American Competitiveness Council (NACC) was an official tri-national working group of the Security and Prosperity Partnership of North America (SPP). It was created at the second summit of the SPP in Cancún, Quintana Roo, Mexico, in March 2006. The SPP is an agreement between the leaders of the United States, Canada and Mexico to work towards a more integrated North American economy and security region. Composed of 30 corporate representatives from some of North America's largest companies, the North American Competitiveness Council has been mandated to set priorities for the SPP and to act as a stable driver of the integration process through changes in government in all three countries.

The NACC became inactive in 2009.

North American Development Bank

The North American Development Bank (NADB) is a binational financial institution capitalized and governed equally by the Federal Governments of the United States of America and Mexico for the purpose of financing environmental projects certified by the Border Environment Cooperation Commission (BECC).

The two institutions work together with communities and project sponsors in both countries to develop and finance infrastructure necessary for a clean and healthy environment for border residents. Established in 1994 with headquarters in San Antonio, Texas, its mission is to serve as a binational partner and catalyst in communities along the U.S.-Mexico border in order to enhance the affordability, financing, long-term development and effective operation of infrastructure that promotes a clean, healthy environment for the citizens of the region.

The NADB provides financial assistance to public and private entities involved in developing environmental infrastructure projects in the border region. Potable water supply, sewage treatment and municipal solid waste management form the core sectors of the Bank’s activities and are its primary focus. However, assistance can also be provided in other areas—such as air quality, clean energy and hazardous waste—where sponsors are able to demonstrate tangible health and/or environmental benefits for residents living in the area.

Created as interdependent institutions, NADB and BECC work as a team to develop integrated, sustainable and fiscally responsible projects with broad community support in a framework of close cooperation and coordination between Mexico and the United States. Within this partnership, BECC verifies the technical feasibility and environmental integrity of the projects seeking financing from the NADB, as well as ensures community support for the project. Consequently, every project must pass through a public participation and certification process performed by the BECC.

In its efforts to help border communities develop and finance affordable, self-sustaining environmental infrastructure projects with broad community support, NADB works with local governments and municipal utilities to increase their financing options by helping them implement sound financial and business practices that provide a basis for well-managed debt financing. As part of this strategy, NADB promotes a comprehensive, long-term approach to infrastructure planning and project finance, offering both loan and grant programs to address different needs.

North American Forum

The North American Forum is an annual meeting of U.S., Canadian and Mexican government and business representatives to discuss issues related to continental economic and social integration. The Forum is chaired jointly by former United States Secretary of State George Shultz, former Mexican Finance Minister Pedro Aspe, and former Alberta premier Peter Lougheed.

North American Free Trade Agreement

The North American Free Trade Agreement (NAFTA; Spanish: Tratado de Libre Comercio de América del Norte, TLCAN; French: Accord de libre-échange nord-américain, ALÉNA) 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, and superseded the 1988 Canada–United States Free Trade Agreement between the United States and Canada. The NAFTA trade bloc is one of the largest trade blocs in the world by gross domestic product.

The impetus for a North American free trade zone began with U.S. President Ronald Reagan, who made the idea part of his 1980 presidential campaign. After the signing of the Canada–United States Free Trade Agreement in 1988, the administrations of U.S. President George H. W. Bush, Mexican President Carlos Salinas de Gortari, and Canadian Prime Minister Brian Mulroney agreed to negotiate what became NAFTA. Each submitted the agreement for ratification in their respective capitals in December 1992, but NAFTA faced significant opposition in both the United States and Canada. All three countries ratified NAFTA in 1993 after the addition of two side agreements, the North American Agreement on Labor Cooperation (NAALC) and the North American Agreement on Environmental Cooperation (NAAEC).

Passage of NAFTA resulted in the elimination or reduction of barriers to trade and investment between the U.S., Canada, and Mexico. The effects of the agreement regarding issues such as employment, the environment, and economic growth have been the subject of political disputes. Most economic analyses indicate that NAFTA has been beneficial to the North American economies and the average citizen, but has harmed a small minority of workers in industries exposed to trade competition. Economists hold that withdrawing from NAFTA or renegotiating NAFTA in a way that reestablishes trade barriers would adversely affect the U.S. economy and cost jobs. However, Mexico would be much more severely affected by job loss and reduction of economic growth in both the short term and long term.After U.S. President Donald Trump took office in January 2017, he sought to replace NAFTA with a new agreement, beginning negotiations with Canada and Mexico. In September 2018, the United States, Mexico, and Canada reached an agreement to replace NAFTA with the United States–Mexico–Canada Agreement (USMCA). NAFTA will remain in force, pending the ratification of the USMCA.

Outline of economics

The following outline is provided as an overview of and topical guide to economics:

Economics – analyzes the production, distribution, and consumption of goods and services. It aims to explain how economies work and how economic agents interact.

Transatlantic Trade and Investment Partnership

The Transatlantic Trade and Investment Partnership (TTIP) is a proposed trade agreement between the European Union and the United States, with the aim of promoting trade and multilateral economic growth. According to Karel de Gucht, European Commissioner for Trade between 2010 and 2014, the TTIP is the largest bilateral trade initiative ever negotiated, not only because it involves the two largest economies in the world but also "because of its potential global reach in setting an example for future partners and agreements".Negotiations were halted by President Donald Trump, who then initiated a trade conflict with the EU. Trump and the EU declared a truce of sorts in July 2018, resuming talks that appeared similar to TTIP.The reports on the ongoing negotiations and the contents of the negotiated TTIP proposals are classified from the public, and can be accessed only by authorised persons. Multiple leaks of proposed TTIP contents into the public caused controversy.The European Commission says that the TTIP would boost the EU's economy by €120 billion, the US economy by €90 billion and the rest of the world by €100 billion. According to Anu Bradford, law professor at Columbia Law School, and Thomas J. Bollyky of the Council on Foreign Relations, TTIP aims to "liberalise one-third of global trade" and could create millions of new jobs. A Guardian article by Dean Baker of the US thinktank Center for Economic and Policy Research argued that the economic benefits per household would be relatively small. According to a European Parliament report, impacts on labour conditions range from job gains to job losses, depending on economic model and assumptions used for predictions.The agreement has been criticized and opposed by some unions, charities, NGOs and environmentalists, particularly in Europe. The Independent describes common criticisms of TTIP as "reducing the regulatory barriers to trade for big business, things like food safety law, environmental legislation, banking regulations and the sovereign powers of individual nations", or more critically as an "assault on European and US societies by transnational corporations". The Guardian noted the criticism of TTIP's "undemocratic nature of the closed-door talks", "influence of powerful lobbyists", TTIP's potential ability to "undermine the democratic authority of local government", and described it as "the most controversial trade deal the EU has ever negotiated". German economist Max Otte argued that by putting European workers into direct competition with Americans (and in effect because of the North American Free Trade Agreement with Mexicans and Canadians), TTIP would negatively impact the European social models. An EU direct democracy mechanism, the European Citizens' Initiative, which enables EU citizens to call directly on the European Commission to propose a legal act, acquired over 3.2 million signatures against TTIP and CETA within a year.

United States–Mexico–Canada Agreement

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 (though generally referred to as "USMCA" in English-language Canadian media) 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).

The Agreement is the result of a 2017–2018 renegotiation of NAFTA by its member states, which informally agreed to the terms on September 30, 2018, and formally on October 1. The USMCA was signed by United States President Donald Trump, Mexican President Enrique Peña Nieto, and Canadian Prime Minister Justin Trudeau on November 30, 2018 as a side event of the 2018 G20 Summit in Buenos Aires. Each country's legislature still must ratify the agreement.

Compared to NAFTA, USMCA increases environmental and labour regulations, and incentivizes more domestic production of cars and trucks. The agreement also provides updated intellectual property protections, gives the United States more access to Canada's dairy market, imposes a quota for Canadian and Mexican automotive production, and increases the duty free limit for Canadians who buy U.S. goods online from $20 to $150.

World Business Report (radio programme)

World Business Report is the BBC World Service's international business and finance news programme, broadcast on Mondays at 0132 and weekdays at 1532 and 2232 GMT and produced at Broadcasting House in London. Each programme is 26 minutes long and includes business news, interviews and reports.

World economy

The world economy or global economy is the economy of the humans of the world, considered as the international exchange of goods and services that is expressed in monetary units of account. In some contexts, the two terms are distinct "international" or "global economy" being measured separately and distinguished from national economies while the "world economy" is simply an aggregate of the separate countries' measurements. Beyond the minimum standard concerning value in production, use and exchange the definitions, representations, models and valuations of the world economy vary widely. It is inseparable from the geography and ecology of Earth.

It is common to limit questions of the world economy exclusively to human economic activity and the world economy is typically judged in monetary terms, even in cases in which there is no efficient market to help valuate certain goods or services, or in cases in which a lack of independent research or government cooperation makes establishing figures difficult. Typical examples are illegal drugs and other black market goods, which by any standard are a part of the world economy, but for which there is by definition no legal market of any kind.

However, even in cases in which there is a clear and efficient market to establish a monetary value, economists do not typically use the current or official exchange rate to translate the monetary units of this market into a single unit for the world economy since exchange rates typically do not closely reflect worldwide value, for example in cases where the volume or price of transactions is closely regulated by the government.

Rather, market valuations in a local currency are typically translated to a single monetary unit using the idea of purchasing power. This is the method used below, which is used for estimating worldwide economic activity in terms of real United States dollars or euros. However, the world economy can be evaluated and expressed in many more ways. It is unclear, for example, how many of the world's 7.62 billion people have most of their economic activity reflected in these valuations.

According to Maddison, until the middle of 19th century, global output was dominated by China and India. Waves of Industrial Revolution in Western Europe and Northern America shifted the shares to the Western Hemisphere. As of 2017, the following 15 countries or regions have reached an economy of at least US$2 trillion by GDP in nominal or PPP terms: Brazil, China, France, Germany, India, Indonesia, Italy, Japan, South Korea, Mexico, Russia, Turkey, the United Kingdom, the United States and the European Union.

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