The North American Free Trade Agreement (NAFTA) is a trade agreement that governs trade and investment between Canada, Mexico, and the United States. It is one of the most significant trade agreements in the world, and it was created to eliminate trade barriers between the three countries.
NAFTA was created in 1994 and has since facilitated trade between the three countries. The agreement provides a framework for trade and investment, and it has helped to increase economic growth and create jobs in the region.
But who created NAFTA?
The idea of a free trade agreement between Canada and the United States was first proposed in the late 1980s by then-Canadian Prime Minister Brian Mulroney and then-US President Ronald Reagan. In 1989, the two countries began negotiating a trade agreement, which ultimately led to the signing of the Canada-United States Free Trade Agreement (CUSFTA) in 1988.
In the early 1990s, Mexico expressed interest in joining the agreement, and negotiations began to include Mexico in the agreement. The negotiations were challenging, as many in the United States were concerned about the impact that free trade could have on American jobs.
In 1992, President George H.W. Bush signed the North American Free Trade Agreement Implementation Act, which allowed for the implementation of NAFTA. On January 1, 1994, NAFTA officially went into effect.
Today, NAFTA continues to be an essential trade agreement in North America. Its impact on the economies of Canada, Mexico, and the United States has been significant. However, the agreement has also been the subject of much criticism, particularly in the United States, where some argue that it has led to the outsourcing of American jobs.
Despite this criticism, NAFTA remains a vital trade agreement in North America. And now, with the United States-Mexico-Canada Agreement (USMCA) replacing NAFTA in 2020, the agreement is poised to continue facilitating trade and investment between the three countries for years to come.