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North American Free Trade Agreement

A Dictionary of World History

North American Free Trade Agreement (NAFTA) An economic pact permitting free trade between the USA, Canada, and Mexico. NAFTA extends a free trade agreement made between the USA and Canada in 1988. The treaty was signed in 1992, ratified in 1993, and took effect in 1994. It provides for the complete removal on all trade tariffs between the member countries, with tariffs on agricultural products to be phased out. Chile applied to join and in 1994 negotiations over its admittance began.

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© A Dictionary of World History 2000, originally published by Oxford University Press 2000.

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