The North American Free Trade Agreement, commonly known as NAFTA, is a trade agreement between the United States, Canada, and Mexico. The agreement was signed in 1992 and came into effect on January 1, 1994. The purpose of NAFTA was to eliminate barriers to trade and investment between the three countries.
However, the question remains: Is NAFTA really a free trade agreement? The answer is somewhat complicated. In essence, NAFTA does aim to promote free trade between the three countries, but it is not a completely free trade agreement.
One of the criticisms of NAFTA is that it still allows for some protectionist measures. For example, some industries are exempt from the free trade agreement, such as agriculture and textiles. Additionally, NAFTA includes provisions for protecting intellectual property rights, which some argue can impede free trade.
Another issue with NAFTA is that it includes rules for investment that some argue give multi-national corporations too much power. For example, NAFTA includes provisions for investor-state dispute settlement, which allows corporations to sue governments if they believe their investments are being unfairly treated.
Despite these concerns, there is no doubt that NAFTA has greatly increased trade between the three countries. Since NAFTA was implemented, trade between the US, Canada, and Mexico has increased significantly. According to the Office of the United States Trade Representative, trade between the three countries has more than tripled since NAFTA was implemented.
Despite criticisms, it is fair to say that NAFTA is a free trade agreement, albeit one with some limitations. While it has not resulted in completely free trade between the three countries, it has certainly opened up trade and investment opportunities and has had a positive impact on the economies of all three countries.