Who Created the Nafta Agreement
- June 19, 2023
The North American Free Trade Agreement (NAFTA) is a trilateral trade agreement between Canada, Mexico, and the United States. It was created with the purpose of reducing trade barriers and increasing trade between the three countries. The agreement was signed on December 17, 1992, and implemented on January 1, 1994.
The creation of NAFTA was a joint effort between the three countries. Negotiations between the three governments began in 1990 and continued for over two years. The leaders of each country were heavily involved in the negotiations, with Canadian Prime Minister Brian Mulroney, Mexican President Carlos Salinas de Gortari, and US President George H.W. Bush all playing vital roles.
The idea for NAFTA began in the 1980s when the US and Canada signed a bilateral free trade agreement. The two countries saw the benefits of reduced trade barriers and increased trade and decided to expand the agreement to include Mexico. The main goal of NAFTA was to increase economic growth in the participating countries by promoting trade and investment.
NAFTA created the world`s largest free trade area, with a combined population of over 460 million people and a combined GDP of over $20 trillion. The agreement eliminated tariffs on most goods traded between the three countries and opened up new markets for businesses in each country.
Despite the benefits of NAFTA, it has also faced criticism. Critics argue that the agreement has led to job losses in the US and Canada as companies moved production to Mexico, where labor costs are lower. However, supporters argue that NAFTA has created jobs in all three countries and has helped make North America more competitive in the global marketplace.
In conclusion, the NAFTA agreement was created through a joint effort between Canada, Mexico, and the United States. The agreement aimed to reduce trade barriers and increase trade between the three countries, ultimately creating the world`s largest free trade area. While it has faced criticism, NAFTA has had a significant impact on the economies of all three countries and remains an important part of North American trade relations.