The North American Free Trade Agreement (NAFTA) was implemented to promote trade between the U.S., Canada, and Mexico. The agreement, which eliminated most tariffs on trade between the three countries, went into effect on Jan. 1, 1994. Numerous tariffs—particularly those related to agricultural products, textiles, and automobiles—were gradually phased out between Jan. 1, 1994, and Jan. 1, 2008.
The North American Free Trade Agreement (NAFTA) was implemented in 1994 to encourage trade between the U.S., Mexico, and Canada.
NAFTA reduced or eliminated tariffs on imports and exports between the three participating countries, creating a huge free-trade zone.
Two side agreements to NAFTA aimed to establish high common standards in workplace safety, labor rights, and environmental protection, to prevent businesses from relocating to other countries to exploit lower wages or looser regulations.
The United States-Mexico-Canada Agreement (USMCA), which was signed on Nov. 30, 2018, and went into full force on July 1, 2020, replaced NAFTA.
NAFTA was a controversial agreement: By some measures (trade growth and investment), it improved the U.S. economy; by others (employment, balance of trade), it hurt the economy.
NAFTA’s purpose was to encourage economic activity among North America's three major economic powers: Canada, the U. S., and Mexico. Proponents of the agreement believed that it would benefit the three nations involved by promoting freer trade and lower tariffs among Canada, Mexico, and the United States.
On Aug. 27, 2018, President Donald Trump announced a new trade deal with Mexico to replace NAFTA. The U.S.-Mexico Trade Agreement, as it was called, would maintain duty-free access for agricultural goods on both sides of the border and eliminate non-tariff barriers while also encouraging more agricultural trade between Mexico and the United States.
Although it is being replaced by CUSMA, NAFTA operated for a number of years and we looked at it in class. Canada is now phasing in another free trade agreement called the Comprehensive Economic and Trade Agreement (CETA) with the European Union. What impact will the implementation of CETA have on Canadian domestic politics? What impacts will the implementation of CETA have on Canadian international trade and foreign relations?