NAFTA
Shannon Patterson
March 25, 2010
Period: 7
ABOUT NAFTA
• The acronym NAFTA means North American
Free Trade Agreement.
• NAFTA covers Canada, the U.S. and New
Mexico.
The Background
• In 1988 Canada and the United States signed
the “Free Trade Agreement”
• Soon after the United States 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.
When was NAFTA started?
• NAFTA was signed by president George H.W. Bush, Mexican
president Salinas, Canadian Prime Minister Brian Mulroney in
1922.
• It was signed into a law by president Bill Clinton on December
8, 1993.
• It entered in force on January 4, 1994.
Why was NAFTA formed?
• To eliminate barriers to trade and facilitate the cross-border
movement of goods.
• Promote conditions for fair competition.
• Increase investment opportunities.
• Provide protection and enforcement of intellectual property
rights.
• Create procedures for the resolution of trade disputes.
• Establish a framework for further trilateral , regional and
multilateral cooperation to expand NAFTA’s benefits.
How did NAFTA fulfill it’s purpose?
• Eliminated trade barriers.
• Increased investment opportunities.
• Established procedures for resolution of trade
disputes.
• Most importantly , it increased the
competitiveness between New Mexico, U.S.
and Canada.
How It Started
• Signed into law by Clinton.
• House: 234 – 200, 11/17.
• Ratified in 1993
Imports
• U.S. goods imports from NAFTA totaled 555.4
billion dollars.
• Five largest categories in 2008 were:
– Mineral Fuel & Oil
– Vehicles
– Electrical Machinery
– Machinery
– & Special Others
History
• First trade agreement was with Israel, on
September 1, 1985.
• Agreement had no expiration date.
• 2nd trade agreement was made with Canada in
January 1988, but was super ceded in 1994.
• Bill Clinton signed the NAFTA into effect on
September 4, 1993.
The End