An agreement between the United States, Canada, and Mexico to establish free trade. It took effect in 1994 and is designed to eliminate trade barriers between the three nations by 2009.
Note: Many American labor unions oppose NAFTA on the grounds that it takes away jobs from American workers as manufacturers relocate in Mexico to take advantage of cheaper labor. Others argue that free trade creates more jobs in the United States than it destroys.
North American Free Trade Agreement - NAFTA
A trade agreement between Canada, the United States and Mexico that encourages free trade between these North American countries.
Investopedia Commentary
The agreement, implemented on January 1, 1994, is based on the premise that removing as many tariffs as possible between these North American countries will increase trade within the region and benefit each country's economy.
Related Links
What Is International Trade?
What Is The World Trade Organization?
See also: Balance of Trade, Dumping, Export, GATT, Globalization, Import, Quota, Tariff, WTO
Also spelled: NAFTA