What Is the North American Free Trade Agreement?

The North American Free Trade Agreement (NAFTA) is an agreement on comprehensive trade between the three countries signed by the United States, Canada, and Mexico on August 12, 1992. The agreement is composed of the United States, Canada, and Mexico. After several years of negotiation, it officially entered into force on January 1, 1994.

North American Free Trade Agreement

Since the early 1980s, Europe

North America

I. From North America

Agriculture has been a controversial issue since NAFTA's initial negotiations.

In 2000, the United States subsidized US corn farmers to US $ 10.1 billion, up to 10 times the Mexican government's agricultural budget for that year. However, some studies believe that NAFTA is not the cause of poverty for corn farmers. It is pointed out that this situation existed as early as ten years before the signing of NAFTA. Instead, corn production increased after NAFTA came into effect in 1994, and the US subsidy policy Whether it has a measurable effect on Mexican corn prices is unclear, although most believe the US cancels

Question of Certificate of Origin

NAFTA's certificate of origin is very strict and complicated, and its certificate of origin only needs to be filled out by the exporter. How to ensure the correctness of its declaration is provided by the customs of the three NAFTA customs through the ex post audit system and the cooperation mechanism between the three countries to provide each other Information and assistance are required to ensure that the certificate of origin is correct and valid.

Whether there are any provisions in the NAFTA rules of origin that conform to certain processes, the yarn forward principle of textiles is an example of the prescribed processes.

Future industrial development of origin

From the perspective of the United States, many textile or automobile industries have moved to Mexico to produce products, which has not achieved protection for the development of the United States industry. However, because NAFTA combines the three countries of the United States, Canada, and Mexico into one region, economic interests are also the focus of development of industries in the region, protecting the industrial interests in the region, promoting regional economic competitiveness, and assisting companies in the region When companies in the North American market or outside the region compete, they may have a comparative advantage.

The North American Free Trade Agreement (NAFTA) was signed by the United States, Canada and Mexico on August 12, 1992 regarding comprehensive trade between the three countries. Unlike the European Union, NAFTA is not an agreement over national governments and national laws.

According to the regulations, the three Member States must adhere to the principles of most-favored-nation treatment and transparency to each other in order to remove barriers to trade. In terms of rights, the goods in the free trade zone can circulate and reduce tariffs, but for countries outside the trade zone, the original tariffs and obstacles are still maintained.

The North American Free Trade Agreement is a derivative of the US-Canada Free Trade Agreement of 1989. The North American Free Trade Agreement is an international agreement that is very similar to a treaty. In U.S. law, it is considered a congressional-administrative agreement.

Regarding the impact of the establishment of the North American Free Trade Area on the economic and trade relations of the United States, Canada, and Mexico, according to US foreign trade statistics, the North American Free Trade Area has not only become the world's largest free trade area since its establishment in 1994. By 2000, the United States and The total import trade between Mexico and the United States has shown a significant increase each year, but the growth of the United States' exports to Canada has increased significantly four years ago, and has been decreasing since 1998. Exports to the United States benefit the most.