The North American Free Trade Agreement (NAFTA); in Spanish: Tratado de Libre Comercio de América del Norte, TLCAN; In French: North American Free Trade Agreement, ALNA) was an agreement signed by Canada, Mexico and the United States, creating a trilateral trade bloc in North America. The agreement came into force on January 1, 1994 and replaced the 1988 Canada-U.S. Free Trade Agreement. [3] The NAFTA trading bloc was one of the largest trading blocs in the world, after the proceeds of the home. The treaty, signed by President Bill Clinton on December 8, 1993, was intended to « eliminate most of the barriers to trade between the three countries, » as TIME said at the time. Friday`s signing, almost exactly 25 years later, was largely ceremonial – Congress still has to approve the deal before anything actually happens – but it brings Trump closer to fulfilling his campaign promise to honor what he called the « worst trade deal of all time. » While the new agreement leaves the actual conditions of NAFTA « largely intact, » it would mark a symbolic end to an era. The free trade agreement was concluded in 1988 and NAFTA extended most of the provisions of the free trade agreement to Mexico. NAFTA was negotiated by the governments of U.S. President George H.W. Bush, Canadian Prime Minister Brian Mulroney and Mexican Prime Minister Carlos Salinas de Gortari. An interim agreement on the pact was reached in August 1992 and signed by the three heads of state and government on 17 December. NAFTA was ratified by the national parliaments of the three countries in 1993 and came into force on January 1, 1994.

President Trump was a strong advocate of renegotiating or abolishing the treaty, saying the agreement was unfair to the United States. You have heard of NAFTA lately. With President Trump`s threats to renegotiate trade agreements with countries like Mexico and China, NAFTA has become a controversial topic. But what is NAFTA, why was it created and how did the world`s largest trade agreement to date work? In 1992, nafta was signed by outgoing President George H.W. Bush, Mexican President Salinas and Canadian Prime Minister Brian Mulroney. At the beginning of the year, the European Union was created by the Maastricht Treaty. According to Chad Bown of the Peterson Institute for International Economics, the Trump administration`s list « is very consistent with the president`s position on trade barriers that like protectionism.