North American Free Trade Agreement

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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 called for the gradual elimination of most remaining barriers to cross-border investment and to the movement of goods and services among the three countries; its provisions as a result were not fully in effect until Jan. 1, 2008. 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 maquiladorasmaquiladoras
, Mexican assembly plants that manufacture finished goods for export to the United States. The maquiladoras are generally owned by non-Mexican corporations.
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); 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. The agreement was a significant issue in the U.S. elections of 1992, in which third-party presidential candidate and NAFTA opponent Ross PerotPerot, H. Ross
(Henry Ross Perot), 1930–, American business executive and political leader, b. Texarkana, Tex., grad. Annapolis, 1953. In 1957 he resigned his commission and became a salesman for IBM.
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 won 19% of the vote, and 2016, during and following which successful Republican presidential candidate Donald TrumpTrump, Donald John,
1946–, 45th president of the United States (2017–), b. New York City. Prior to his election as president in 2016, he was a business executive rather than a political leader. After attending Fordham Univ. and the Wharton business school (B.Sc.
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 called for its renegotiation or abandonment.

References in periodicals archive ?
In other words, NAFTA is not merely a trade agreement but also a regime, a proto-international government designed to override those portions of U.
We are in the NAFTA (worst trade deal ever made) renegotiation process with Mexico & Canada.
Though NAFTA is going to be renegotiated at the federal level, Texas' robust trade partnership with Mexico makes the state Capitol a prime venue for NAFTA's proponents and opponents.
When you opt out of NAFTA, you opt out of everything.
Add weight to presentations and pitches by understanding the future growth prospects of the NAFTA steel market with five year forecasts
Within the paper & paperboard industry, the US is the leading country among the NAFTA bloc, with market revenues of $72.
The second part of Chapter Eleven focuses on the dispute mechanism, which allows an investor to choose from three arbitral tribunals for an alleged NAFTA violation by a party: (1) the World Bank's International Centre for Settlement of Investment Disputes (ICSID); (2) ICSID's Additional Facility Rules; and (3) the rules of the United Nations Commission for International Trade Law (UNCITRAL Rules).
Nevertheless, compliance with these rules imposes an administrative cost on firms participating in NAFTA trade.
Mexican Views on NAFTA: Mexico's Calderon has argued that renegotiation of NAFTA is unnecessary and would lead to increased illegal immigration in the United States.
Hufbauer and Schott provide specific recommendations that highlight the limitations of the administrative framework created by NAFTA and other previous agreements.
Although a NAFTA ruling carries the weight of law in Canada, the U.
Advocating connections in this capacity is necessary, because important Canadian issues, such as softwood lumber tariffs, which contravene the NAFTA agreement, are "completely invisible on the radar screen of U.