The North American Free Trade Agreement (Nafta) Has Answers.com

Under NAFTA, total trade in trilateral goods, relative to each country`s total imports from its other two NAFTA partners, amounted to nearly $1 trillion, more than a tripling since 1993. In 2016, our NAFTA partners accounted for approximately 77.8% of Canada`s total merchandise exports. Total merchandise trade between Canada and the United States has more than doubled since 1993 and has increased nine-fold between Canada and Mexico. The North American Free Trade Agreement (NAFTA) was inspired by the success of the European Economic Community (1957-1993) in removing tariffs to stimulate trade among its members. Supporters argued that the creation of a free trade area in North America would bring prosperity through increased trade and production, resulting in the creation of millions of well-paying jobs in all participating countries. NAFTA has benefited North American businesses from increased export opportunities resulting from lower tariffs, predictable rules and the removal of technical barriers to trade. In addition to increased exports and imports, companies have become more specialized and therefore more competitive, allowing them to bring things together for customers close to the customer, both inside and outside the NAFTA region. The North American Free Trade Agreement (NAFTA), signed by Prime Minister Brian Mulroney, Mexican President Carlos Salinas and U.S. President George H.W. Bush, came into force on January 1, 1994.

NAFTA has created economic growth and a rising standard of living for the people of the three member countries. By strengthening trade and investment rules and procedures across the continent, Nafta has proven to be a solid foundation for building Canada`s prosperity. NAFTA replaced Canada-U.S. Free Trade Agreement (CUFTA). Negotiations on CUFTA began in 1986 and the agreement entered into force on 1 January 1989. The two nations agreed on a landmark agreement that put Canada and the United States at the forefront of trade liberalization. For more information, visit the Canada-U.S. Free Trade Agreement information page. Fifth, all NAFTA countries were required to respect patents, trademarks and copyrights. At the same time, the agreement ensured that these intellectual property rights did not affect trade. On January 29, 2020, President Donald Trump signed the agreement between the United States, Mexico-Canada.