The North American Free Trade Agreement (NAFTA)
Posted by Ripon Abu Hasnat on Friday, June 13, 2014 | 0 comments
The
North American Free Trade Agreement
(NAFTA) is an agreement signed
by Canada, Mexico, and the United States, creating a trilateral rules-based trade
bloc in North America. The agreement came into force on January 1, 1994. It
superseded the Canada–United States Free Trade Agreement between the U.S. and
Canada.
NAFTA
has two supplements: the North American Agreement on Environmental Cooperation
(NAAEC) and the North American Agreement on Labor Cooperation (NAALC).
In
terms of combined purchasing power parity GDP of its members, as of 2007 the
trade bloc is the largest in the world and second largest by nominal GDP
comparison.
The
goal of NAFTA was to eliminate barriers with trading and investment between the
U.S., Canada and Mexico. The implementation of NAFTA on January 1, 1994 brought
the immediate elimination of tariffs on more than one-half of Mexico's exports
to the U.S. and more than one-third of U.S. exports to Mexico. Within 10 years
of the implementation of the agreement, all U.S.-Mexico tariffs would be
eliminated except for some U.S. agricultural exports to Mexico that were to be
phased out within 15 years. Most U.S.-Canada trade was already duty-free. NAFTA
also seeks to eliminate non-tariff trade barriers and to protect the
intellectual property right of the products.
Chapter
52 provides a procedure for the interstate resolution of disputes over the
application and interpretation of NAFTA. It was modeled after Chapter 69 of the
Canada-United States Free Trade Agreement.
The roster of NAFTA adjudicators includes many retired judges, such as Alice
Desjardins, John Maxwell Evans, Constance Hunt, John Richard, Arlin M. Adams,
Susan Getzendanner, George C. Pratt, Charles B. Renfrew and Sandra Day
O'Connor.
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