NAFTA is a the North American Free Trade Agreement that came into effect in the year 1994. The purpose of this agreement was to create the biggest free trade zone for North America, Canada and Mexico. This was to develop a strong economic base and it exhibited competitiveness in delivering positive results among the manufacturers, farmers, consumers and workers in these countries. Following is the overview of the history of the NAFTA agreement:
- This agreement was put into effect on January 1, 1994 and was signed by the leaders of three countries mexico, the U.S., and Canada.
- This agreement was created after the success of the free trade agreement done by Canada and U.S.
- The world’s largest free trade area was formed with NAFTA agreement coming into effect.
- The NAFTA has been exemplary as the first Free Trade Agreement of its type and has proven the advantages of the trade liberalization for rest of the world to follow.
- The legal tribunal of the NAFTA allows the cross border investors to seek settlement of disputes through a proper channel and the NAFTA has been the first body to provide such channel of clear set of regulations.
Ari Afilalo is a law professor and researches on various law matters including the European Union, the International Trade Law, and NAFTA.