The North American Free Trade Agreement Essay example

1492 Words Dec 2nd, 2015 null Page
The North American Free Trade Agreement (NAFTA) is a trade agreement between the states of Canada, Mexico, and the United States. The document was signed in 1992 by the President of the United States George Bush, the President of Mexico, Salinas and the Prime Minister of Canada Mulroney. The United States didn’t sign NAFTA into law until 1993, when Bill Clinton signed the treaty into law. The treaty passed the US House of Representatives by a 234 to 200 and the US Senate by a margin of 60 to 38. In essence NAFTA eliminated restrictions on the flow of goods, services, and investment in North America. NAFTA eliminated Mexican tariffs of 250% compared to US tariffs. NAFTA originally eliminated around half of the tariffs between the two countries. The rest of the tariffs between the United States and Mexico have been eliminated over the next fifteen years. NAFTA also provided for full protection of intellectual property within the states included within the treaty (Pearson, 2015). NAFTA took effect on January 1, 1994 having been ratified and signed by Canada, Mexico and the United States (Canada History 2013). The idea of NAFTA came into being as a result of United States President, Ronald Reagan speaking of a North American free trade agreement when he was campaigning in 1979. In 1989 a United States-Canada free trade agreement was reached. This helped to set the stage for the addition of Mexico to a free trade agreement. As a result of NAFTA “Intra-North American trade has…

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