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 ?
Two major trading blocs are now developing: the Economic Community in Europe, which keeps attracting new entrants while suffering difficulties in getting agreements on monetary union and other provisions of the Maastricht Agreement, and the proposed North American Free Trade Area, which would add Mexico to the agreement entered into by Canada and the United States in 1988.
Unfortunately, Haggard's analysis of the sources of changes in economic policies in Brazil and Mexico are somewhat limited and does not include the major liberalizations that Mexico introduced from the end of the 1980s onwards and the far-reaching and daring steps that Mexico made to participate in the North American Free Trade Area (NAFTA).
The very concept of a North American Free Trade Area was born.
The two big success stories are the European Community and the North American Free Trade Area.

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