1. Why is Nafta important?

Ans: Goals of NAFTA. NAFTA was created to eliminate barriers to trade and investment
between the US, Canada and Mexico. The implementation of NAFTA immediately eliminated
tariffs on more than one-half of Mexico's exports to the US and more than one-third of US.
exports to Mexico.

2. Why is Nafta used?

Ans: This is a trilaterally agreed upon form used by Canada, Mexico, and the United States to
certify that goods qualify for the preferential tariff treatment accorded by NAFTA. ... To make a
claim for NAFTA preference, the importer must possess a certificate of origin at the time the
claim is made.Jan 17, 2018

3.What is Nafta and what did it do?

Ans: The North American Free Trade Agreement (NAFTA) is a treaty entered into by the
United States, Canada, and Mexico; it went into effect on January 1, 1994. (Free trade had
existed between the U.S. and Canada since 1989; NAFTA broadened that arrangement.)

4. What is Nafta and why was it created?

Ans: Economists believe that this sort of a system allows more goods to be produced in the
world as a whole than would be produced if countries did not trade. NAFTA was created as a
way to encourage free trade. It created a free trade zone between Mexico, the United States, and
Canada.

NAFTA was created as part of a more general move on the part of the United States
Government towards reducing trade barriers and creating a world wide regime in which
occurs as freely possible.
The US government has promoted free trade even as this led to the rise of countries that
would compete with them. Government Official have typically believed that this is in the
best interest of the United States.
NAFTA was created as a way to encourse free trade. It created a free trade zone between
Mexico, the U.S. and Canada. By taking down trade barriers between these countries, it
allowed three to be greater production in those countries. This allowed the people of the
three countries to join a higher standard of living.

5. What is NAFTA?
Ans: NAFTA means North American Free Trade Agreement , which was negotiate by former
an agreement between the U.S. Canada and Mexico that allows them to trade with each other
without paying imports taxes.
Since it came into force , NAFTA has benefited all three economies, raising cross-broader trade
and investment. NAFTA create an established order in the new relationship with America and
Canada, with a specific timetable for the opening of most key industries.

When it was established?

Ans: A 1994 agreement made by the U.S. Canada and Mexico for the gradual elimination of
tariffs and import quotas so as to remove barriers to free trade among those countries.

NAFTA’s Activities:
Ans: a) To reduce barriers to trade
b) To increase cooperation for improving working conditions in North America.
c) To create an expanded and safe market for goods and service produced in North
America
d) To establish clear and mutually advantageous trade rules
e) To help develop and expand world trade and provide a catalyst to broader
international cooperation.

NAFTA's History
Back in 1984, President Ronald Reagan passed the Trade and Tariff Act, which allowed the
president special authority to negotiate free trade agreements more quickly. Going off of
Reagan's initiative, Canadian Prime Minister Mulroney supported the president and the Canada-
U.S. Free Trade Agreement was eventually signed in 1988; it went into effect one year after.

When George H.W. Bush became president, he began to negotiate with Mexican President
Salinas to generate a trade agreement between Mexico and the U.S. The trade agreement was
part of President Bush's three-part plan called the Enterprise for the Americas Initiative, which
also included debt relief programs.

After Mexico lobbied for a trilateral trade agreement in 1991, NAFTA was created as a way to
open up free trade between the three, not just two, superpowers in North America. President
H.W. Bush signed the NAFTA agreement in 1992, which was also signed by Canadian Prime
Minister Brian Mulroney and Mexican President Salinas.

The agreement went into effect under Bush's successor President Bill Clinton, who signed the
agreement himself on Dec. 8, 1993. By January of 1994, the trade agreement was in effect.

Despite a joint effort, NAFTA was considered one of President Clinton's first victories as
president.

What Is NAFTA's Purpose?

According to NAFTA's article 102 of the agreement, there are 6 declared objectives of the treaty.

1. Eliminate barriers to trade in, and facilitate the cross-border movement of, goods and services
between the territories of the parties.
2. Promote conditions of fair competition in the free trade area.
3. Increase substantially investment opportunities in the territories of the parties.
4. Provide adequate and effective protection and enforcement of intellectual property rights in
each party's territory.
5. Create effective procedures for the implementation and application of this agreement, for its
joint administration and for the resolution of disputes.
6. Establish a framework for further trilateral, regional and multilateral cooperation to expand and
enhance the benefits of this agreement.

What Has NAFTA Accomplished?

While there is ample debate as to the long-term benefits of NAFTA, the agreement has
accomplished several things since its implementation in the 1990s.

Apart from expanding consumer choice for the past 20 years, NAFTA has multiplied trade
between the three countries by about 3.5 times compared to 1994, according to an Associated
Press report back in 2013.

Additionally, all three countries have enjoyed increased trade, economic growth, and higher
wages since NAFTA was approved in 1994, but whether these are the result of NAFTA remains
a question for experts. In fact, a 2010 Congressional Research Service report claimed that "Most
studies after NAFTA have found that the effects on the Mexican economy tended to be modest at
most."

Still, NAFTA has lived up to its aims in some fashion, increasing U.S.-Mexican trade to $481.5
billion in 2015 and U.S.-Canada trade totaling $518.2 billion. That's a 255% and 63.5% increase
respectively, according to the Mexican Embassy in Canada. Although the jury is out as to if these
phenomenal increases are due solely to NAFTA (which they are almost certainly not), experts
believe the treaty has certainly helped.

As of 2017, Mexico and Canada are the second and third-largest exporters to America, behind
China in the number one spot. However, current threats to withdraw the United States from
NAFTA could have significant impacts on tariffs. Without NAFTA keeping tariffs between the
three countries at around 0%, tariffs would revert to those set by the World Trade Organization,
which, according to The New York Times, average at about 7.1% for Mexico, 3.5% for the
United States, and 4.2% for Canada.

Still, NAFTA has intellectual property (IP) provisions that help protect and give rights to the
countries involved in relation to their intellectual property. However, recent discussions over the
protection of data under current provisions have called NAFTA to increase protection levels for
IP.

Additionally, through the NAFTA Certificate of Origin, exporters can often waive tariffs if they
"certify that goods qualify for the preferential tariff treatment accorded by NAFTA" - which
would receive reduced duties. The application must be completed by the exporter, but would
reduce duties on exports between the three countries.

How Has NAFTA Impacted the Economy?

NAFTA's impact on the economy is seemingly mixed. When President Clinton first signed the
treaty in 1993, he predicted an enormous economic benefit.

"NAFTA will tear down trade barriers between our three nations, create the world's largest trade
zone, and create 200,000 jobs in [the U.S.] by 1995 alone," President Clinton claimed. "The
environmental and labor side agreements negotiated by our administration will make this
agreement a force for social progress as well as economic growth."

However, the successfulness of the treaty in accomplishing these goals is up to debate.

Since its implementation, NAFTA has benefited the economy through increasing overall trade to
well over $1 trillion between the countries.

Additionally, the treaty has helped protect foreign investors by allowing them to bypass courts
with complaints of government regulation negatively impacting their businesses. According to
USA Today, Mexico and Canada paid out around $350 million in damages to foreign investors -
but the United States hadn't paid any as of 2013.

Some estimates suggest NAFTA has only benefited U.S. GDP by around 0.5%, or around $80
billion, according to the Council on Foreign Relations.

Still, apart from the financials, NAFTA has had a certain impact on supply-chain-related sectors
including transportation. The provisions in NAFTA allow for liberal regulation of land
transportation regarding streamlining licensing and processing for truckers through an open U.S.-
Mexico border. Moreover, NAFTA's history with the environment has largely helped maintain
environmental data across the three countries in North America, but recent concerns center
around this aspect of the treaty being cut for budget purposes.

Criticism of NAFTA
Over the course of its duration, there have been many critics of NAFTA and what it has
accomplished. Many critics blame NAFTA for a decrease in manufacturing workers, which CNN
reported to be down from 17 million in 1994 to 12.4 million in 2017 - claiming to be sending
those jobs to Mexico, which is lower-cost employment.

Additionally, critics claim that the maquiladora programs implemented in Mexico exploit
Mexican workers, and that workers who did keep U.S. manufacturing jobs must accept lower
wages due to competition.

President Trump has been vocal about his harsh stance on trade with other countries, leading up
to the current trade war with China. The president has also been a notable critic of NAFTA.
President Trump allegedly wants to terminate NAFTA, as per his agenda opposing free trade
with Mexico, and also reportedly wants to put a 35% tax on goods, like Ford (F - Get Report)
cars, that are made in Mexico, according to CNN.

In fact, the president has been critical from the beginning.

"NAFTA is the worst trade deal maybe ever signed anywhere, but certainly ever signed in this
country," Trump told then-candidate Hillary Clinton during a debate in 2016.

However, Trump isn't the only one criticizing the agreement.

Former President Obama reportedly blamed NAFTA for an increase in unemployment during his
2008 Presidential campaign. Criticizing the treaty during his presidency, Obama proposed the
Trans-Pacific Partnership deal (which is similar to the Trump presidency's changes to NAFTA),
calling on U.S. trading partners to "adhere to strict labor and environmental standards,"
according to Politico.

However, the Trump administration's wishes to alter NAFTA are causing experts to scratch their
heads - especially in reference to the TPP.

"It is ironic that they want to fix a 'terrible' agreement by including provisions from the TPP, one
deal that the administration claims is even worse," Bill Reinsch, a fellow at the Stimson Center,
told Politico last year.

Regardless of the debate over its long-term effects, NAFTA is undoubtedly one of the most
important trade agreements in recent history.
 What is the role of Nafta?
The North American Free Trade Agreement, abbreviated NAFTA, is an agreement between the United
States, Canada and Mexico that eliminated tariffs and duties on trade between the three countries.
Trade barriers began dropping as of Jan. 1, 1994, and were completely eliminated on schedule by Jan. 1,
2008.

What is the goal of Nafta?

Goals of NAFTA. NAFTA was created to eliminate barriers to trade and investment between the US,
Canada and Mexico. The implementation of NAFTA immediately eliminated tariffs on more than one-
half of Mexico's exports to the US and more than one-third of US. exports to Mexico.

What are the functions of Nafta?

The major functions of NAFTA are: Eliminate trade barriers in various service sectors belonging to its
member nations. Reduce high Mexican tariffs and help to promote agricultural exports.

How long has Nafta been in effect?

The Canada-U.S. Free Trade Agreement (CUSFTA) - NAFTA superseded the Canada-U.S. Free Trade
Agreement (CUSFTA), which had come into effect five years earlier on January 1, 1989. At that time,
Canada and the United States signed an historic agreement that placed them at the forefront of trade
liberalization.

Why is Nafta used?

This is a trilaterally agreed upon form used by Canada, Mexico, and the United States to certify that
goods qualify for the preferential tariff treatment accorded by NAFTA. ... To make a claim for NAFTA
preference, the importer must possess a certificate of origin at the time the claim is made.Jan 17, 2018

Who is a member of Nafta?

The North American Free Trade Agreement (NAFTA) is an agreement signed by Canada, Mexico, and the
United States and entered into force on 1 January 1994 in order to establish a trilateral trade bloc in
North America.

What are the Nafta rules of origin?

The NAFTA grants benefits and reduces tariffs only on goods that qualify under the NAFTA Rules of
Origin. ... Only originating goods as defined by NAFTA are entitled to receive duty-free or reduced tariff
treatment.May 23, 2018

How does Nafta benefit the US?

The North American Free Trade Agreement is a trade deal between the US, Mexico, and Canada. ...
NAFTA eliminated most tariffs, such as taxes on imports and exports, and on traded goods among the
three nations. It put in place processes to get rid of other trade barriers too.Feb 5, 2017

Where is the headquarters of the Nafta?

The NAFTA Secretariat is comprised of: the Canadian Section located in Ottawa; the Mexican Section
located in Mexico City; and. the United States Section located in Washington, D.C.

What type of trade agreement is Nafta?

In 1994, the North American Free Trade Agreement (NAFTA) came into effect, creating one of the
world's largest free trade zones and laying the foundations for strong economic growth and rising
prosperity for Canada, the United States, and Mexico.

Is a Nafta certificate required?

The NAFTA Certificate of Origin is not required for shipments to another NAFTA country unless the
product qualifies for preferential tariff treatment under the NAFTA rules of origin. A certificate is not
needed if the shipment does not qualify for preferential tariff treatment.

How many jobs has Nafta created?

Supporters of NAFTA estimate that some 14 million jobs rely on trade with Canada and Mexico
combined, and the nearly 200,000 export-related jobs created annually by NAFTA pay an average salary
of 15% to 20% more than the jobs that were lost, according to a PIIE study.Sep 6, 2016

Who negotiated Nafta?

NAFTA was negotiated by the administrations of U.S. Pres. George H.W. Bush, Canadian Prime Minister
Brian Mulroney, and Mexican Pres. Carlos Salinas de Gortari.

Why is Nafta important to the United States?

The North American Free Trade Agreement is a treaty between Canada, Mexico and the United States.
That makes NAFTA the world's largest free trade agreement. ... The three signatories agreed to remove
trade barriers between them. By eliminating tariffs, NAFTA increases investment opportunities.

How does Nafta benefit Mexico?

Economic growth has been steady at around two percent, but that growth is far from the growth the
deal was supposed to bring. However, NAFTA has boosted foreign investment in Mexico, and it has
allowed Mexico to boost exports which now compose a large portion of the Mexican GDP.

What are pros and cons of Nafta?

Chart of NAFTA Pros and Cons
Worth
List Pros Cons
It?

Trade Increased. Yes

682,900 U.S. manufacturing jobs lost in

Jobs Created 5 million U.S. jobs. Yes
some states.

Remaining U.S. factories suppressed

Wages Average wages increased. Yes
wages.

Forced jobless Mexicans to cross

Immigration No
the border illegally.

U.S. unions lost leverage. Mexican

Workers No
workers were exploited.

Canada exploited shale fields. Mexican

Environment No
environment deteriorated.

Oil Costs less in the United States. Improved Mexican economy. Yes

Food U.S. costs lower Mexican farmers went out of business. No

U.S. finance and health care

Services Put Mexican companies out of business. Yes
exports increased.

FDI Increased. None. Yes

Government More competitive bidding on

Yes
Spending government contracts.

Where is Nafta located?

The NAFTA Secretariat is comprised of: the Canadian Section located in Ottawa; the Mexican Section
located in Mexico City; and. the United States Section located in Washington, D.C.

What type of trade agreement is Nafta?

In 1994, the North American Free Trade Agreement (NAFTA) came into effect, creating one of the
world's largest free trade zones and laying the foundations for strong economic growth and rising
prosperity for Canada, the United States, and Mexico.

How the new USMCA trade deal factors into Trump's trade war with
China

owOne clause in the new deal to replace NAFTA appears to

target Canada and Mexico's trade dealings with China

NAFTA’s Economic Impact

President Trump has reached a deal with Canada and Mexico to restructure the North American
Free Trade Agreement, hoping a new trilateral accord will reinvigorate the U.S. manufacturing
sector.

Introduction
The North American Free Trade Agreement, or NAFTA, is a three-country accord negotiated by
the governments of Canada, Mexico, and the United States that entered into force in January
1994. NAFTA’s terms, which were implemented gradually through January 2008, eliminated
most tariffs on products traded between the three countries. Liberalization of trade in agriculture,
textiles, and automobile manufacturing was a major focus. The deal also sought to protect
intellectual property, establish dispute resolution mechanisms, and, through side agreements,
implement labor and environmental safeguards.

NAFTA fundamentally reshaped North American economic relations, driving unprecedented

integration between Canada’s and the United States’ developed economies and Mexico’s
developing one. In the United States, NAFTA enjoyed bipartisan backing; it was negotiated by
Republican President George H.W. Bush, passed a Democratic-controlled Congress, and was
implemented under Democratic President Bill Clinton. It encouraged regional trade to more than
triple, and cross-border investment between the three countries also grew significantly.

Yet NAFTA has remained a perennial target in the broader debate over free trade. President
Donald J. Trump says it has undermined U.S. jobs and manufacturing, and in October 2018 his
administration struck a deal with Canada and Mexico on an updated version of the pact, to be
known as the U.S.-Mexico-Canada Agreement, or USMCA.
What is NAFTA and why does Trump want it renegotiated?

What is NAFTA, who are the winners and losers, and why did Trump call it 'the worst trade deal'
in US history?

19 Aug 2017

US President Donald Trump, on the campaign trail, labelled NAFTA "the worst trade deal" ever
signed by the US.

Trump blames NAFTA for wiping out US manufacturing jobs because it allowed companies to
move factories to Mexico where labour is cheaper.

In April 2017, US President threatened to pull out of the trade agreement. Canada and Mexico
insisted to renegotiate it instead, and Trump agreed.

Here is what NAFTA is all about.

What is NAFTA's impact on Mexico and Canada?

According to the Council on Foreign Relations (CFR), NAFTA gave a major boost to Mexican
farm exports to the US, which have tripled since NAFTA's implementation. Hundreds of
thousands of Mexican auto-manufacturing jobs have also been created, and most studies have
found that the pact had a positive impact on Mexican productivity and consumer prices.

But there are significant downsides: Mexico's economy grew at an average rate of just 1.3
percent a year between 1993 and 2013 during a period when Latin America was undergoing a
major expansion, and poverty remains at similar levels to 1994, while mass unemployment has
increased.

Some believe that, instead of fulfilling its promise of providing cheaper food to Mexicans,
NAFTA deepened Mexico's dependency on food imports, leaving it unprotected from volatility
in international food prices and exchange rates, reported Al Jazeera recently.

On Wednesday, thousands of Mexican farmers and workers took to the streets demanding that
NAFTA be abandoned. They argue that the deal has devastated Mexican small farms, which
struggle to compete with US imports.

Canada has seen strong gains in cross-border investment in the NAFTA era, according to the
CFR: Since 1993, US and Mexican investments in Canada have tripled. Canadian agriculture, in
particular, saw a boost, while employment in Canadian manufacturing held steady.

However, the "productivity gap" between the Canadian and US economies remains wide:
Canada's labour productivity remains at 72 percent of US levels.
Where was the Nafta signed?
Clinton signed it into law on December 8, 1993; the agreement went into effect on January 1, 1994.
Clinton, while signing the NAFTA bill, stated that "NAFTA means jobs. American jobs, and good-paying
American jobs.

Who negotiated Nafta?

NAFTA was negotiated by the administrations of U.S. Pres. George H.W. Bush, Canadian Prime Minister
Brian Mulroney, and Mexican Pres. Carlos Salinas de Gortari.

How was Nafta created?

Economists believe that this sort of a system allows more goods to be produced in the world as a whole
than would be produced if countries did not trade. NAFTA was created as a way to encourage free
trade. It created a free trade zone between Mexico, the United States, and Canada.

What US president started Nafta?

The North American Free Trade Agreement (NAFTA) is signed into law by President Bill Clinton. Clinton
said he hoped the agreement would encourage other nations to work toward a broader world-trade
pact.

Why is Nafta important?

Goals of NAFTA. NAFTA was created to eliminate barriers to trade and investment between the US,
Canada and Mexico. The implementation of NAFTA immediately eliminated tariffs on more than one-
half of Mexico's exports to the US and more than one-third of US. exports to Mexico.

Why is Nafta used?

This is a trilaterally agreed upon form used by Canada, Mexico, and the United States to certify that
goods qualify for the preferential tariff treatment accorded by NAFTA. ... To make a claim for NAFTA
preference, the importer must possess a certificate of origin at the time the claim is made.Jan 17, 2018

What are the functions of Nafta?

The major functions of NAFTA are: Eliminate trade barriers in various service sectors belonging to its
member nations. Reduce high Mexican tariffs and help to promote agricultural exports.

Why was the Nafta started?

6 Advantage of NAFTA?

ANS: a) Quardrupled Trade

b) Lowered Prices

c) Increased Economic growth

d) Create Job

e) Increase Foreign Direct Investment

f) Reduced Government spending

6 Problems of NAFTA?
U.S. Jobs Were Lost
a) U.S Jobs were lost
U.S. Wages Were Suppressed
b) U.S wages were suppressed
Mexico's Farmers Were Put Out of Business
c) Mexico’s farmers were put out of business
Maquiladora Workers Were Exploited
d) Maquiladora workers were Exploited
Mexico's Environment Deteriorated
e) Mexico’s environment deteriorated
NAFTA Called for Free U.S. Access for Mexican Trucks
f) NAFTA called for free U.S access trucks
Donald Trump does not want to renegotiate the North American Free Trade Agreement. He
wants to kill it.

The Canadian gripe that could still kill NAFTA negotiations

Trump can try to kill NAFTA, but it will still host the World Cup in 2026

The US, Canada and Mexico will jointly host soccer’s World Cup in 2026—a reminder that the
economic ties binding the three nations together will outlast US president Donald
Trump’s bluster about trade back-stabbing.

Trump wants to update NAFTA? Great. Kill it? No thanks

President Trump’s announcement Monday that he was replacing the North American Free Trade
Agreement with a deal just with Mexico was, like so much of what comes out of the White
House, as much posturing as policy.

For starters, there is no deal with Mexico, at least not yet. There’s a “preliminary agreement in
principle” by the two sides to update certain provisions of NAFTA, but Mexican officials said
multiple times Monday that they have a non-trivial precondition: Canada must be on board too.

Trump and other administration officials didn’t acknowledge as much Monday. Instead, Trump
threatened to slap tariffs on more Canadian goods if our neighbor to the north didn’t accede to
terms in short order.

Second, if Canada does join in, the deal would look a lot like the old NAFTA regardless of what
it’s called. The changes agreed to by Mexico resemble what the Obama administration was
pursuing through the Trans-Pacific Partnership — a trade deal with 11 mostly Asian countries
that Trump abandoned — just with fewer partners.
Trump Reaches Revised Trade Deal With Mexico, Threatening to Leave
Out Canada

WASHINGTON — President Trump said on Monday that the United States and Mexico had
reached an accord to revise key portions of the North American Free Trade Agreement and
would finalize it within days, suggesting he was ready to jettison Canada from the trilateral trade
pact if the country did not get on board quickly.

This means war: furious Canada and Mexico launch retaliation after
Trump imposes tariffs

Canada responded to the US tariffs on steel and aluminium by imposing billions worth of
countermeasures, while Mexico put duties on food and steel and the EU vowed its own
retaliation

PUBLISHED : Thursday, 31 May, 2018, 10:36pm

UPDATED : Friday, 01 June, 2018, 11:04am

Comments: 5

Canada, the largest exporter of steel and aluminium to the United States, said it would apply
countertariffs of 25 per cent and 10 per cent on US$16.6 billion worth of American metals, farm
goods and other products, to take effect July 1.

“That Canada could be a national security threat to the US is inconceivable,” said Canadian
Prime Minister Justin Trudeau, noting the many Canadians who have died alongside US soldiers
in joint military operations over the years. “These tariffs are an affront to the long-standing
security partnership between Canada and the United States.”

Mexico responded to the news by announcing immediate retaliatory tariffs on US products

including pork bellies, apples, grapes, blueberries and flat steel.
Canada and Mexico face a tricky renegotiation of their trade deal with
the United States