by Effie Moore Salem

Created on: December 09, 2008   Last Updated: February 10, 2011

The North American Free Trade Agreement (NAFTA) is an agreement between Canada, US and Mexico that secures trade among themselves. It has been the trade policy for these countries since January 1, 1994. At its beginning, it was talk of television, radio and the newspapers. All except a few detractors were for it. It is a  program designed to secure better commerce between North American countries has been quite successful and has resulted in better trade between Canada, Mexico and the United States.

How does it work? It takes care of trade barriers that have been implemented years earlier and it addresses other impediments to the free association of business dealers; it protects import-sensitive produce; has set priorities for other sensitive importing and exporting procedures.

As an example, the last barrier to free trade with Mexico was lifted in this past year. (2008) previously, since 1994 there were licensing problems with Mexico but essentially all these are now in the past, or at least have been set for a final future rule out. Regarding sensitive areas, each country has a right to point to a provision in the agreement should there be reason to amendment or to temporarily cease exports or imports.

With Canada, an earlier agreement, the Canadian Free Trade Association had been in place since 1989 and it was simply incorporated into NAFTA. Since 1998 all barriers were lifted from trading with Canada.

Sensitive trading areas such as sanitation, health risk from some imports and the right of each country to set its own standards for imports is one of its considerations; another is the control of export subsidies worldwide where they speak with one voice on this concern. They work toward an internal - meaning North American - control as opposed to World Trade Organization -WTO - control. Other considerations are quality and standard requirements.

How has it helped the US? Canada is the largest US export Market and Canada is the second according to a 2007 survey. With this agreement in place, the first incentive for these three countries to buy or sell their produce is within the perimeters of NAFTA boundaries.

There are detractors to the above statements. One online site, .citizen.org calls it a disaster. They cite religious groups, some labor and environmental groups as being against it. They say its promoters were the big corporations who would be the ones to gain. They call it a radical experiment and that it set limits on safety standards and limits

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