North American Free Trade Agreement (NAFTA)

The North American Free Trade Agreement (NAFTA) is a regional agreement between the Governments of Canada, United Mexican States and the United States of America to implement a free trade area. NAFTA came into force on January 1, 1994.

The objectives of this Agreement are to:

eliminate barriers to trade in, and facilitate the cross-border movement of goods and services between the territories of the Parties;
promote conditions of fair competition in the free trade area;
increase substantially investment opportunities in the territories of the Parties;
provide adequate and effective protection and enforcement of intellectual property rights in each Party’s territory.
Trade relations among Canada, Mexico, and the United States have broadened substantially since NAFTA’s implementation.
The overall value of intra-North American trade has more than tripled since the agreement’s inception. Regional business investment in the United States also rose substantially. Since 1994, Mexico’s GDP has increased at an average annual rate of 2.7 per cent. Mexican exports to the United States have quadrupled since NAFTA’s implementation. Canada, the leading exporter of goods to the United States, has experienced economic growth since NAFTA’s implementation. Canada has seen the strongest gains. Between 1994 and 2003, Canada’s economy showed average annual growth rates of 3.6 per cent.

North American Free Trade Agreement (NAFTA)

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