1. N A F T A
The North American Free Trade Agreement
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2. N A F T A
• Free Trade Agreement between America,
Canada, Mexico
• Came into effect on January 1 , 1994
• The world's largest free trade bloc
• laying the foundations for strong economic
growth and rising prosperity for Canada, the
United States, and Mexico.

3. N A F T A : What ?
• Free Trade Agreement between America,
Canada, Mexico
• “Free Trade” means that countries may freely
trade goods with each other without having
to pay a tariff(tax) on those goods.

4. N A F T A : Why ?
The purpose of establishing the agreement is to :
• Allow free movement of goods and services
among the countries
• Protect the property rights of people and
business in each country
• Encourage the cooperation among countries
• Be able to resolve dispute
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5. N A F T A : Background
• In 1994, the North American Free Trade
Agreement (NAFTA), a state-of-the-art market-
opening agreement, came into force. Since then,
NAFTA has systematically eliminated most tariff
and non-tariff barriers to trade and investment
between Canada, the United States, and Mexico.
By establishing a strong and reliable framework
for investment, NAFTA has also helped create the
environment of confidence and stability required
for long-term investment. NAFTA was preceded
by the Canada-U.S. Free Trade Agreement.
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6. N A F T A : Background
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7. N A F T A , Contents
• NAFTA has played an important role in the
overall development of the three nations
• Dispute resolution
• Commitment to intellectual property &
environment legislation
• Mutual entry into governmental bidding & the
financial and other service sector
• But on the other hand it is also responsible for
causalities like loss of jobs , migration , rising level
of inequality and many others
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8. N A F T A , Contents
• Rules of Origin
• Side Agreements
• Commitment to the Environment
• Commitment to Labor Cooperation
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9. N A F T A : Benefits ?
• Since NAFTA came into effect, trade and
investment levels in North America have
increased.
• bringing strong economic growth, job
creation, and better prices and selection in
consumer goods.
• North American businesses, consumers,
families, workers, and farmers have all
benefited.

10. N A F T A
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11. N A F T A , Fast facts
• Did you know?
• Today, NAFTA partners
exchange nearly US$2.6
billion in merchandise each
day—that’s about US$108
million per hour.
• In 1994, NAFTA was a state-
of-the-art market-opening
agreement that paved the
way for the creation of high-
paying export-related jobs
and strong economic
growth throughout North
America.
Good to know

12. N A F T A : Future
• It is about integration of
the North American
marketplace
• It is about moving up
the value-added chain
• It is about maintaining
and increasing
competitiveness and
productivity

13. N A F T A : Conclusion
• NAFTA has played an important role in the
overall development of the three nations
• Dispute resolution
• Commitment to intellectual property &
environment legislation
• Mutual entry into governmental bidding & the
financial and other service sector
• But on the other hand it is also responsible for
causalities like loss of jobs , migration , rising level
of inequality and many others