North American Free Trade Agreement

North American Free Trade Agreement (NAFTA), accord establishing a free-trade zone in North America; it was signed in 1992 by Canada, Mexico, and the United States and took effect on Jan. 1, 1994. NAFTA immediately lifted tariffs on the majority of goods produced by the signatory nations. It also calls for the gradual elimination, over a period of 15 years, of most remaining barriers to cross-border investment and to the movement of goods and services among the three countries. Major industries affected include agriculture, automobile and textile manufacture, telecommunications, financial services, energy, and trucking. NAFTA also provides for labor and environmental cooperation among member countries. The pact contains provisions for the inclusion of additional member nations. Labor representatives have criticized NAFTA, claiming the agreement has led to numerous jobs lost in the United States because industries have moved plants to Mexico (see maquiladoras ); NAFTA proponents point to the U.S. jobs created because of increased imports by Mexico and Canada. The agreement has negatively affected the economies of several Caribbean countries whose exports to the United States now compete with duty-free Mexican exports.

North American Free Trade Agreement (NAFTA) Treaty designed to eliminate trade barriers between Canada, Mexico, and the USA. The agreement was signed in 1992, and NAFTA came into effect on January 1, 1994. Some Latin American countries have also applied to join.

http://www.nafta-sec-alena.org

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.