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 ?
* CPA FIRMS HAVE RESPONDED quickly to the numerous business consulting opportunities resulting from the ratification of the North American Free Trade Agreement (NAFTA).
Having started on a small scale in the mid-1960s, the maquiladoras grew dramatically after Mexico revised its economic regulations and signed the North American Free Trade Agreement (NAFFA).
Trade between the two nations has increased since 1994, when the North American Free Trade Agreement (NAFTA) took effect.
One colorful opponent condemned my vision of the world where goods and services flow freely to the benefit of both producers and consumers as "very Right-wing even by American standards" Britain in the North American Free Trade Agreement (NAFTA), he predicted, would result in the British Isles becoming a "satellite of America at the mercy of American pressure groups and their congressional stooges."
Even if we close the borders now, we won't solve our environmental or economic problems." PEG cites Friends of the Earth statistics that show that the North American Free Trade Agreement (NAFTA) has driven 500,000 Mexican farmers off their land, and that the General Agreement on Tariffs and Trade (GATT) will make three billion rural farmers superfluous.
Clinton boasted of bipartisan sup port for the North American Free Trade Agreement and the General Agreement on Tariffs and Trade, promising benefits at home and around the globe.
The glossary defines both commonly used and arcane terms reflecting recently ratified international tax laws such as transfer pricing regulations and the North American Free Trade Agreement as well as terms used to reflect pending legislation such as the General Agreement on Tariffs and Trade.
So the whole chain of reasoning described above, endlessly repeated throughout the book, and even used to attack the North American Free Trade Agreement (it would result in too much unskilled labor chasing too little "patient" capital and so drive down wages), must be wrong.
Convincing small business in general, and minority-owned businesses in particular, to support the North American Free Trade Agreement (NAFTA) was key to President Clinton's successful effort to get the legislation passed.
There's little doubt that the North American Free Trade Agreement will be a boon to Mexico, but are Hispanics buying it?
Opponents of the North American Free Trade Agreement, including those from organized labor and environmental groups, are missing the point NAFTA is about markets, growth, and an improved standard of living, not just jobs
During the three days, 105 appointments with elected officials were arranged, allowing foundrymen to discuss pending environmental legislation, tax and energy issues, North American Free Trade Agreement (NAFTA) and other concerns central to foundries.

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