Published Oct 25, 2023 The North American Free Trade Agreement, or NAFTA, is a trade agreement signed by the United States, Canada, and Mexico. It came into effect on January 1, 1994, and created one of the largest free trade zones in the world. Its purpose was to eliminate barriers to trade and investment between the three countries, promoting economic growth and increasing competitiveness. NAFTA was negotiated by President George H.W. Bush, signed by President Bill Clinton, and ratified by Congress in 1993. It built upon the earlier Canada-U.S. Free Trade Agreement, which had been implemented in 1989. NAFTA includes provisions for the elimination of tariffs and other trade barriers on a wide range of goods and services, including agriculture, manufacturing, and services like telecommunications and financial services. It also provides protection for intellectual property rights and establishes procedures for resolving trade disputes between the member countries. NAFTA has had a significant impact on the economies of the member countries. It has led to increased trade and investment, as well as the integration of supply chains across North America. It has also resulted in job creation and higher wages in some industries. However, it has also faced criticism for its effects on certain industries, such as manufacturing, and has been a topic of political debate in all three countries. In 2020, negotiations were concluded to replace NAFTA with the United States-Mexico-Canada Agreement (USMCA). The USMCA includes updates and modernizations to the original agreement, addressing issues such as digital trade, labor, and environmental standards. It was ratified by the three countries and entered into force on July 1, 2020.Definition of North American Free Trade Agreement (NAFTA)
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Future of NAFTA
Economics