The North American Free Trade Agreement (NAFTA); in Spanish: Tratado de Libre Comercio de América del Norte, TLCAN; In French: North American Free Trade Agreement, ALNA) was an agreement signed by Canada, Mexico and the United States, creating a trilateral trade bloc in North America. The agreement came into force on January 1, 1994 and replaced the 1988 Canada-U.S. Free Trade Agreement. [3] The NAFTA trading bloc was one of the largest trading blocs in the world, after the proceeds of the home. According to Chad P. Bown (Senior Fellow at the Peterson Institute for International Economics), it is unlikely that a renegotiated NAFTA, which would restore barriers to trade, will help workers who have lost their jobs, regardless of their cause, to use new employment opportunities.» [154] The U.S. Chamber of Commerce attributed to nafta that U.S. trade in goods and services with Canada and Mexico increased from $337 billion in 1993 to $1 trillion in 2011, while the AFL-CIO signed the agreement for sending 700,000 U.S. production jobs to Mexico during that period. [86] Second, nafta eliminated many tariffs on imports and exports between the three countries. Tariffs are taxes that are used to increase the cost of foreign goods. NAFTA has developed specific rules to regulate trade in agricultural products, motor vehicles and clothing.

The economic growth that followed NAFTA was not impressive in any of the countries involved. The United States and Canada have suffered greatly from several economic recessions, including the Great Recession of 2007-09, which overshadowed all the positive effects that NAFTA could have had. Mexico`s gross domestic product (GDP) grew at a slower pace compared to other Latin American countries such as Brazil and Chile, and its per-person income growth was not significant, although there was an expansion of the middle class in the years following NAFTA. NAFTA has not eliminated regulatory requirements for companies wishing to act internationally, such as rules of origin and documentation obligations, that determine whether certain products can be traded under NAFTA. The free trade agreement also provides for administrative, civil and criminal sanctions for companies that violate the laws or customs procedures of the three countries. A 2015 study showed that Mexico`s prosperity increased by 1.31% as a result of NAFTA tariff reductions and by 118% for Mexico`s intra-Bloc trade. [63] Inequality and poverty have decreased in the regions of Mexico most affected by globalization. [75] Studies from 2013 and 2015 showed that Mexican small farmers benefited more from NAFTA than large farmers. [76] [77] NAFTA has had mixed results. It turned out that it was not the magic bullet imagined by his supporters, nor the devastating blow that his detractors had predicted.

Mexico has seen a dramatic increase in exports from about $60 billion in 1994 to nearly $400 billion in 2013. The increase in exports has also resulted in an explosion in imports, resulting in an influx of better quality and cheaper goods for Mexican consumers.