North American Free Trade Agreement (NAFTA)Article Free Pass
North American Free Trade Agreement (NAFTA), trade pact signed
in 1992 that would gradually eliminate most tariffs and other
trade barriers on products and services passing between the
United States, Canada, and Mexico. The pact would effectively
create a free-trade bloc among the three largest countries of
North America. NAFTA was inspired by the success of the European
Community in eliminating tariffs in order to stimulate trade
among its members. A Canadian-U.S. free-trade agreement was
concluded in 1988, and NAFTA basically extended this agreement’s
provisions to Mexico. NAFTA was negotiated by the
administrations of U.S. president George Bush, Canadian prime
minister Brian Mulroney, and Mexican president Carlos Salinas de
Gortari. Preliminary agreement on the pact was reached in August
1992, and it was signed by the three leaders on December 17,
1992. NAFTA was ratified by the three countries’ national
legislatures in 1993 and went into effect