North American Free Trade Agreement

(redirected from NAFTA)
Also found in: Dictionary, Thesaurus, Legal, Financial, Acronyms, Wikipedia.

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 calls for the gradual elimination, over a period of 15 years, of most remaining barriers to cross-border investment and to the movement of goods and services among the three countries. 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.
..... Click the link for more information.
); 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.
References in periodicals archive ?
Reality: NAFTA has killed/exported hundreds of thousands of American jobs.
manufacturing workers rose by 26 percent over the period 1997-2006, when NAFTA was almost fully implemented.
Any national or local policy of a WTO or NAFTA signatory nation that falls outside WTO or NAFTA's terms--even if it has nothing to do with trade per se--is challengeable as an "illegal trade barrier" before a WTO or NAFTA tribunal.
By that measure, NAFTA has been a spectacular success.
agreement, and that NAFTA strengthened governmental support for
President Clinton is justifiably pleased at recent job growth, but he is at least honest--or politically sophisticated enough--to realize that attributing economic gains to NAFTA would be disastrous.
But recent reporting on both sides of the border for a new PBS series, "Surviving the Bottom Line," has sobered me considerably on NAFTA and suggests that it's time for a reality check on some of the basic flaws in the pro-NAFTA logic.
NAFTA hasn't even been around for four whole years yet.
When President Clinton failed to deliver his report on NAFTA to the Congress on July 1, friends and foes alike of the treaty tapped their feet in audible frustration.
Companies that wish to take advantage of NAFTA will need WHAT'S the expertise of accountants to assist them with the documentation necessary to gain access to NAFTA markets, solve complex international tax issues and assist in expanding information systems to accommodate the nuances of international trade.
NAFTA will open the Mexican and Canadian government procurement markets to U.
The NAFTA text commits each country to sustainable development, to maintain and strengthen existing federal or state environmental standards, and not to waive environmental standards as an investment incentive.