North American Free Trade Agreement (NAFTA)

The North American Free Trade Agreement (NAFTA) is a regional agreement between the Governments of Canada, United Mexican States and the United States of America to implement a free trade area. NAFTA came into force on January 1, 1994.

The objectives of this Agreement are to:

• eliminate barriers to trade in, and facilitate the cross-border movement of goods and services between the territories of the Parties;
• promote conditions of fair competition in the free trade area;
• increase substantially investment opportunities in the territories of the Parties;
• provide adequate and effective protection and enforcement of intellectual property rights in each Party�s territory.
• Trade relations among Canada, Mexico, and the United States have broadened substantially since NAFTA�s implementation.
• The overall value of intra-North American trade has more than tripled since the agreement�s inception. Regional business investment in the United States also rose substantially. Since 1994, Mexico�s GDP has increased at an average annual rate of 2.7 per cent. Mexican exports to the United States have quadrupled since NAFTA�s implementation. Canada, the leading exporter of goods to the United States, has experienced economic growth since NAFTA�s implementation. Canada has seen the strongest gains. Between 1994 and 2003, Canada�s economy showed average annual growth rates of 3.6 per cent.

Written by princy