North American Free Trade Agreement

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North American Free Trade Agreement (NAFTA)

A regional trade pact among the United States, Canada, and Mexico.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

North America Free Trade Agreement

A controversial free trade agreement between Canada, Mexico, and the United States. Signed in 1993, it was the first free trade agreement between a developing nation (Mexico) and two developed nations. The agreement reduced or eliminated most trade restrictions between the participants. In particular, NAFTA allowed for the more or less free importation and exportation of agricultural products and textiles. Proponents of NAFTA argue that the agreement allowed for cheaper access to goods, especially food, which in turn increased the real incomes in all three countries. Critics contend that the agreement has not substantially reduced poverty in any of the participating countries. Mexican critics complain that NAFTA reduced profits for farmers and agricultural workers unable to compete with American agribusiness.

American organized labor have argued that the agreement has accelerated deindustrialization and caused job losses because it has become cheaper for American companies to move factories to Mexico and hire Mexican workers. NAFTA proponents note that employment in the United States increased between 1993 and 2007, and that factories in the U.S. were closing even before NAFTA was signed.

Canadian opposition to NAFTA has been largely related to environmental concerns, particularly the lack of oversight for the enforcement of its environmental provisions. Because NAFTA allows Canadian water to be bought and sold as a commodity, some environmental groups have been concerned that this would cause the degradation of Canadian wild lands. See also: Maquiladora.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

North American Free Trade Agreement (NAFTA)

a regional FREE-TRADE AREA established in 1989 by the USA and Canada. NAFTA set about removing tariffs on most manufactured goods, raw materials and agricultural produce over a 10-year period, as well as restrictions on cross-border investment, banking and financial services. Mexico joined NAFTA in 1993 with the aim of removing tariffs between Mexico and the other two countries by 2009. NAFTA has a similar market size (population 414 million) as that of the EUROPEAN UNION. See TRADE INTEGRATION.
Collins Dictionary of Economics, 4th ed. © C. Pass, B. Lowes, L. Davies 2005
References in periodicals archive ?
The revised NAFTA deal is set to impact the intellectual property of the US and the trade exports between US and Mexico among other trade policies.
If NAFTA were to be discontinued, Simpson said that it would cause harm to those RSI member companies with presences in Mexico, which would, in turn, disrupt the North American rail network, making eliminating NAFTA "something that should be rejected."
Under NAFTA, we will get to keep those portions of our Constitution not deemed in conflict with either NAFTA or the WTO.
Hinz-Foley Trejo said that even as Texas benefits from the economic effects of NAFTA, state lawmakers have targeted undocumented immigrants who came to Texas after unemployment in parts of Mexico soared because of NAFTA - by passing Senate Bill 4, a bill that cracks down on "sanctuary" cities and other jurisdictions that don't enforce federal immigration laws.
Ventspils Nafta's shares had been quoted on the Main List of the Nasdaq Riga stock exchange since 1998.
Within the steel industry, the US is the leading country among the NAFTA bloc, with market revenues of $72,713.9 million in 2014.
* What was the size of the NAFTA paper & paperboard market by value in 2015?
Chapter Twenty provides parties with a dispute settlement mechanism regarding the interpretation or application of any part of NAFTA. (50) The dispute settlement procedure outlined in Chapter Twenty begins with party-to-party consultations.
While not specifically governed by NAFTA provisions, some Canadian business and policymakers are claiming that the NAFTA promise of free trade is being undermined by increased security at the border and what they consider to be the increasing tendency of U.S.
Nevertheless, compliance with these rules imposes an administrative cost on firms participating in NAFTA trade.
American Views on NAFTA: Critics of NAFTA argue that the trade agreement is responsible for devastating job losses in the United States, especially in the manufacturing industry.
No cause for celebration, say NAFTA critics, who argue that the trade pact must be fixed or ditched.