NAFTA

NAFTA (North American Free Trade Agreement) 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 The agreement came into force on January 1, 1994, and superseded the 1988 Canada–United States Free Trade Agreement.

History

The NAFTA agreement was signed by Canadian Prime Minister Brian Mulroney, Mexican President Carlos Salinas, and U.S. President George H. W. Bush on December 17, 1992, and entered into force on January 1, 1994. It was later updated by the USMCA (United States–Mexico–Canada Agreement) in 2020.

Provisions

NAFTA has two supplements: the North American Agreement on Environmental Cooperation (NAAEC) and the North American Agreement on Labor Cooperation (NAALC). It introduced a number of tariff reductions, as well as comprehensive rules on trade, investment, intellectual property, dispute settlement, and other trade-related issues.

Impact

The impact of NAFTA on the economies of the member countries is a subject of ongoing debate. Some studies indicate that NAFTA has been beneficial to the North American economies and the average citizen, but has been detrimental to a small subset of workers in industries exposed to trade competition.

Criticism

NAFTA has been criticized for its impact on workers, the environment, and national sovereignty. Critics argue that it has led to job losses and wage stagnation in the United States, driven by low-wage competition, companies moving production to Mexico to lower costs, and a widening trade deficit.

See also

• Free trade agreements of the United States
• Free trade agreements of Canada
• Free trade agreements of Mexico

NAFTA Resources
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