18.1g North American Free Trade Agreement (NAFTA)
The Flags of the three signatory countries
The NAFTA signatories
This is a trade agreement between the U.S.A., Canada and Mexico. It came into
force in 1994. It aimed at eliminating tariffs between the three
countries progressively from 1994 onwards. The removal of tariffs
would apply to "qualifying" goods.
Other objectives of this agreement include the attempts to encourage competition, increase investment in the region and set up a framework to enhance cooperation between the countries. The fifth chapter of the document of this agreement spells out methods to ensure that trade flows occur within the region. A NAFTA center has been set up to provide free information, so that any queries relating to the customs administration can be answered.
This agreement is first of its kind to link two highly industrialized countries to a developing one.