NAFTA is a free trade agreement between the United States, Canada, and Mexico that came into effect in 1994. It aims to allow free movement of goods and services between the countries by eliminating tariffs and non-tariff barriers. Since its implementation, trade and investment have increased significantly in North America, bringing economic growth and better prices. However, NAFTA has also been criticized for contributing to job losses and rising inequality in some areas.

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