NORTH AMERICAN FREE TRADE AGREEMENT

(NAFTA)

INTRODUCTION

NAFTA is an agreement signed by the governments of the United states, Canada and Mexico creating a trilateral trade bloc in North America.

Members: Canada, Mexico & United StatesOfficial languages: English, French and

SpanishSecretariats: Mexico city, Ottawa,

Washington D.C.Establishment: 1 January 1994GDP of NAFTA alliance: USD 12 trillionNAFTA supplements: NAAEC & NAALC

BACK GROUND

• In 1988 Canada & the United States signed the Canada-United states Free Trade Agreement

• The American government then entered into negotiations with the Mexican government for a similar treaty

• Canada asked to join the negotiations in order to preserve its perceived gains under the 1988 deal

• The agreement NAFTA was signed by • U.S. president - George H. W. Bush, • Canadian prime minister - Brian Mulroney

and Mexican president - Carlos Salinas • in San Antanio, Texas on December 17,1992.

Members• Canada• Mexico• United States

Headquarters.•Mexico City (Mexico),•Ottawa (Canada),•Washington D.C. (USA) 

OBJECTIVES OF NAFTATo eliminate trade barriers & facilitate the cross-border movements of goods and services between the parties

To promote conditions of fair competition

To substantially increase investment opportunities

To provide adequate and effective protection & enforcement of intellectual property rights in each territory

To create effective procedures for the implementation and application of this agreement ,for its joint administration & for resolution of disputes

To establish a framework for further trilateral, regional and multilateral co-operation to expand and enhance benefits of this agreement

EFFECTS OF NAFTA BENEFITS

Benefit’s the importers by reduced or duty free goods.

Can make the exporter more competitive then other non-participating countries

There has been great increase in trade among the three countries and market access within each country also increased considerably.

Mexico’s poverty rate decreased and real income increased, even after economic crisis 1994-1995

NAFTA had been beneficial to business owners and elites in all three countries

CONCLUSION

• The North American Free Trade Agreement (NAFTA) will not be fully implemented until 2008. However, it is evident that NAFTA has already proved its worth to the United States by playing an important and vital role in increasing consumer choice, improving market access for U.S. products, and expanding U.S. jobs supported by exports.