NAFTA (economic Bloc)

Summary of Contents

What is NAFTA

gasoline is a economic bloc of the Free Trade Agreement of America from North or in English North American Free Trade Agreement (NAFTA) which entered into force in 1994.

Nafta is made up of 3 North American countries: Canada, Mexico, and the United States.

The main objective with the creation of Nafta was to reduce or eliminate trade barriers between the three countries mentioned above, all in order to compete with the European Union (EU), a block made up of European countries that presented positive results and stand out in the economic scenario.

The synonyms of gasoline are: fuel and gasoline. That is why the word naphtha can refer to a petroleum derivative, used as a high-octane fuel, through the catalytic process and for the production of synthesis gas used in the production of domestic gas.

Finally, in the petrochemical industry it is used as raw material for the production of ethylene, propylene, benzene, toluene and xylenes. Also, in the chemical industry it is used as a solvent.

Objectives

  • Increased export, import and investment.
  • Eliminate tariff barriers.
  • Ease of movement of goods and services between member countries.
  • Free trade.
  • Greater integration of countries.
  • Reduce trade costs, through the elimination or reduction of import taxes on trade relations between member countries.

See also:

  • Free trade
  • Export

History

Nafta began with the “Economic Liberation Agreement”, signed between the United States and Canada in 1988. Consequently, in 1992 the old treaty was extended with the entry of Mexico as a member of the bloc and from then on moment, the Nafta’s main objective is the free commercial movement between the three countries.

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As such, Nafta was signed in October 1992 by Mexican President Carlos Salinas de Gortari, United States President George H. Bush and Canadian Prime Minister Brian Mulroney. However, it came into effect on January 1, 1994.

Despite some inconveniences at the time of the creation of the economic bloc, it has favored economic development between the countries, achieving a significant increase in exports, especially in agricultural products. Also, a growth in production and investment, which generates job opportunities, reducing the unemployment rate.