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North American Free Trade Agreement NAFTA

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The North American Free Trade Agreement was negotiated between the United States, Mexico and Canada between 1991 and 1993. It supplements the earlier US-Canada accord, which had been in operation since January 1, 1989 and extends the principle of the free movement of trade and financial services to Mexico as well. In a sense, the agreement simply formalizes the extensive economic ties that Mexico and Canada have with the U.S. A wide-ranging trade and commerce liberalization pact among the United States, Mexico and Canada. But NAFTA and its subsequent parallel agreements have also established timetables and mechanisms to eliminate the vast majority of remaining trade and investment barriers in North America by 2009.