North American Free Trade
Agreement (NAFTA)
Identification Trade agreement reducing barriers
to the flow of goods, services, and investment
among Canada, Mexico, and the United States
Date Signed in 1992; ratified in 1993;
implemented in 1994
This agreement allowed for increased economic interactions
among the three nations. The treaty was highly debated
with regard to its merits and flaws both before and after its
implementation.
On January 1, 1994, the North American Free Trade
Agreement (NAFTA) came into effect. The United
States, Canada, and Mexico entered a new era in
their economic history by promising to remove most
tariffs on products traded among them and to phase
out all tariff barriers over the next fifteen years. This
agreement was an expansion of the Canada-United
States Free Trade Agreement of 1988 and resulted
from trade talks among U.S. president George H. W.
Bush, Canadian prime minister Brian Mulroney,
and Mexican president Carlos Salinas de Gortari.
While NAFTA was ratified by all the legislatures, Jan-
uary 1, 1994, was the date set for the agreement to
begin; the actual treaty had been signed in Decem-
ber, 1992, and ratified by the legislatures of all three
countries in 1993. Ratification was not an easy task,
however, as strong opposition to the treaty existed
in different areas of society, including labor unions
in the United States and Canada and farmers in
Mexico.618 North American Free Trade Agreement (NAFTA) The Nineties in America
The Government of Canada, the Government of the United Mexican States and the Government of the
United States of America, resolved to:
Strengthenthe special bonds of friendship and cooperation among their nations;
Contributeto the harmonious development and expansion of world trade and provide a catalyst to
broader international cooperation;
Createan expanded and secure market for the goods and services produced in their territories;
Reducedistortions to trade;
Establishclear and mutually advantageous rules governing their trade;
Ensurea predictable commercial framework for business planning and investment;
Buildon their respective rights and obligations under the General Agreement on Tariffs and Trade
and other multilateral and bilateral instruments of cooperation;
Enhancethe competitiveness of their firms in global markets;
Fostercreativity and innovation, and promote trade in goods and services that are the subject of intel-
lectual property rights;
Createnew employment opportunities and improve working conditions and living standards in their
respective territories;
Undertakeeach of the preceding in a manner consistent with environmental protection and conserva-
tion;
Preservetheir flexibility to safeguard the public welfare;
Promotesustainable development;
Strengthenthe development and enforcement of environmental laws and regulations; and
Protect, enhance and enforce basic workers’ rights.Preamble to the North American Free Trade Agreement