North+American+Free+Trade+Agreement


 * History **

NAFTA occurred as a result of diplomatic relations and negotiations between the North American states: the United States, Canada, and Mexico. In order to increase trade relations between the three states, the political leaders of the three states met on December 17, 1992 to sign NAFTA, in which it was ceremoniously signed before it was to be ratified by each state’s legislative or parliamentary bodies. NAFTA was officially established January 1, 1994. For extended information on the history of NAFTA, go to its official page on the website of the U.S. Trade Representative: [].


 * Member States **

There are three member states of NAFTA: the United States, Canada, and Mexico.


 * Purposes/Goals/Objectives **

The purpose of NAFTA is to increase and facilitate trade and investment within the three North American states (the United States, Canada, and Mexico) by eliminating tariffs between the United States, Mexico and Canada and to break non-tariff trade barriers. Another concern of NAFTA is the protection of intellectual property right of the traded products.




 * Structure **

The United States is most influential in trade in North America. The most important free trade agreement of NAFTA is that between Mexico and the United States, which previously had tariffs on products traded between the two states. This trade alliance contains the most amount of trade between the two countries involved. The second most important free trade agreement outlined in NAFTA is that between the United States and Canada. However, these two states had already established a large amount of duty free trading previous to the signing of NAFTA, but trade did, in fact, increase between the United States and Canada. The least used, and thus least important or influential, trade agreement is that between Mexico and Canada. Since the two states are separated entirely by land by the United States, the predominant avenue of trade between them is the Pacific Ocean. The distance between Mexico and Canada does not make trade between them easy, reasonable, or successful. To learn more about NAFTA, go to [].


 * Advantages of Joining **

The advantages of NAFTA often debated upon. However, the trade agreement has greatly increased the amount of trade and investment between the three members of NAFTA. This increased trade and international investment has, in turn, supported and further developed the economies of all the participating states.

The disadvantages of NAFTA are also its advantages, in a manner of speaking. The lack of tariffs between the states results in a lack of economic benefits for the governments in regards to the tariffs and other taxes on international products. Another issue with NAFTA has been the transfer of industrial production from the United States or Canada to Mexico’s maquiladoras. In addition, Mexico’s farmers have been upset by the introduction of cheaper American agricultural products.
 * Disadvantages of Joining **


 * Effects on Local Diversity **

NAFTA has challenged local diversity by more easily introducing products from a North American states into others, thus influencing that state’s culture and local diversity.

United States Department of Agriculture (2011). North American Free Trade Agreement (NAFTA). Retrieved from: [].

United States Trade Representative (2010). North American Free Trade Agreement (NAFTA). Retrieved from: [].