The North American Free Trade Agreement (NAFTA) is an international agreement signed by the governments of Canada, Mexico and the United States that creates a trilateral trade bloc in North America. The agreement came into force on January 1, 1994. NAFTA aims to eliminate all tariff and non-tariff barriers to trade and investment between the United States, Canada and Mexico. In 1984, Congress passed the Trade and Customs Act, which gave the president quick power to negotiate free trade agreements. He only allowed Congress to approve or disapprove of Congress, and he could not change the negotiating points. Discussions made progress on a number of issues, including telecommunications, pharmacy, chemicals, digital commerce and the fight against corruption. But the way in which the origin of automotive content is measured has proved to be a sensitive point, as the United States fears an influx of Chinese auto parts. Discussions will be further complicated by a World Trade Organization (WTO) proceeding against the United States in December. But the most important aspect for Canada – opening up its economy to the United States, by far Canada`s largest trading partner – was before NAFTA, when the Canadian United States came into force in 1989. Free Trade Agreement (CUSFTA).
Total Canada-U.S. Trade rose rapidly in the wake of trade liberalization in Canada. After NAFTA, Canadian exports to the United States increased from [PDF] $110 billion to $346 billion; Imports from the United States increased almost as sharply. The idea of a trade agreement actually goes back to the administration of Ronald Reagan. During his tenure as president, Reagan made an election campaign promise to open up trade in North America by signing the Trade and Tariff Act in 1984, which gave the president more negotiations on trade deals without problems. Four years later, Reagan and the Canadian Prime Minister signed the Canada-Americans. Free trade agreement. The main provisions of NAFTA required a gradual reduction in tariffs, tariffs and other barriers to trade between the three members, with some tariffs to be abolished immediately and others over a 15-year period. The agreement guaranteed duty-free access for a wide range of industrial products and goods traded between the signatories.
“Domestic goods” have been granted to products imported from other NAFTA countries and prohibit all governments, local or provincial, from imposing taxes or tariffs on these products. Although NAFTA has not kept all its promises, it has remained in place. Indeed, in 2004, the Central American Free Trade Agreement (CAFTA) extended NAFTA to five Central American countries (El Salvador, Guatemala, Honduras, Costa Rica and Nicaragua). In the same year, the Dominican Republic joined the group in signing a free trade agreement with the United States, followed by Colombia in 2006, Peru in 2007 and Panama in 2011. The Trans-Pacific Partnership (TPP), signed on October 5, 2015, represented an extension of NAFTA to a much larger extent. After all, three low-key events have had a significant impact on the North American economy, none of which can be attributed to NAFTA. The collapse of the technology bubble has led to growth. The September 11 attacks led to a severe crackdown on border crossings, particularly between the United States and Mexico, but also between the United States.