Ruba Shammaa NAFTA

In 1994, the North American Free Trade Agreement (NAFTA) came into effect, creating one of the worlds largest free trade zones and laying the foundations for strong economic growth and rising prosperity for Canada, the United States, and Mexico. Since then, NAFTA has demonstrated how free trade increases wealth and competitiveness, delivering real benefits to families, farmers, workers, manufacturers, and consumers. The NAFTA partners have created this website to provide Canadians, Americans, and Mexicans with information about how NAFTA works and the many ways in which it has improved the lives of North Americans.

North American Free Trade Agreement

Made up of ministerial representatives from the NAFTA partners. Supervises the implementation and further elaboration of the Agreement and helps resolve disputes arising from its interpretation. Oversees the work of the NAFTA committees, working groups, and other subsidiary bodies.

NAFTA Coordinators

Senior trade department officials designated by each country. Responsible for the day-to-day management of NAFTA implementation.

NAFTA Working Groups and Committees

Over 30 working groups and committees have been established to facilitate trade and investment and to ensure the effective implementation and administration of NAFTA. Key areas of work include trade in goods, rules of origin, customs, agricultural trade and subsidies, standards, government procurement, investment and services, cross-border movement of business people, and alternative dispute resolution.

NAFTA Secretariat

Made up of a national section from each member country. Responsible for administering the dispute settlement provisions of the Agreement and for administering dispute resolution processes under Chapter 14, Chapter 19 and Chapter 20. Also has certain responsibilities related to the Chapter 11 dispute settlement provisions concerning investment. Maintains a court-like registry relating to panel, committee, and tribunal proceedings.

Maintains a tri-national website containing up-to-date information on past and current disputes.

Commission for Labor Cooperation

Created to promote cooperation on labor matters among NAFTA members and the effective enforcement of domestic labor law. Consists of a Council of Ministers (comprising the labor ministers from each country) and a Secretariat, which provides administrative, technical, and operational support to the Council and implements an annual work program. Departments responsible for labor in each of the three countries serve as domestic implementation points. For more information, please visit

Commission for Environmental Cooperation

Established to further cooperation among NAFTA partners in implementing the environmental side accord to NAFTA and to address environmental issues of continental concern, with particular attention to the environmental challenges and opportunities presented by continentwide free trade. Consists of a Council (comprising the environment ministers from each country), a Joint Public Advisory Committee (a 15-member, independent volunteer body that provides advice and public input to Council on any matter within the scope of the environmental accord), and a Secretariat (which provides administrative, technical, and operational support). For more information on topics that have been reviewed by the Council, please visit

NAFTA 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.
NAFTA ~ Chronology of Events

June 10, 1990: Canada, the U.S., and Mexico agree to pursue a free trade agreement February 5, 1991: NAFTA negotiations begin. December 17, 1992: NAFTA is signed by leaders from Canada, the U.S., and Mexico. August 1993: Additional side agreements on labor and the environment are negotiated. January 1, 1994: NAFTA enters into force

The Canada-U.S. Free Trade Agreement

Negotiations toward a free trade agreement between the United States and Canada began in 1985. Sixteen months later, the two nations came together and agreed to the Canada-U.S. Free Trade Agreement (FTA). It was a historic agreement that placed Canada and the United States at the forefront of trade liberalization.

Key elements of the Agreement included the elimination of tariffs and the reduction of many non-tariff barriers to trade. The FTA was also among the first trade agreements to address trade in services. It also included a dispute settlement mechanism for the fair and expeditious resolution of trade disagreements, and established a ground-breaking system for the binational review of trade remedy determinations, thereby providing an alternative to domestic judicial review. In practical terms, Canada and the United States agreed to remove bilateral border measures on traded goods, which included the removal of tariffs on goods such as meat products, fruits and vegetables, beverages, processed foods, live animals, wine, clothing and textiles, fuels, electrical goods and machinery.
Canada-U.S. FTA ~ Chronology of Events

September 26, 1985: Canada proposes a free trade agreement with the United States. October 4, 1987: Substantive negotiations conclude an agreement is reached on the CanadaU.S. Free Trade Agreement. January 2 1988: The Agreement is signed by leaders from Canada and the United States. January 1, 1989: The Canada-U.S. Free Trade Agreement enters into force.

1. What is NAFTA?

The North American Free Trade Agreement (NAFTA) is a comprehensive trade agreement that sets the rules of trade and investment between Canada, the United States, and Mexico. Since the agreement entered into force on January 1, 1994, NAFTA has systematically eliminated most tariff and non-tariff barriers to free trade and investment between the three NAFTA countries.
2. How does NAFTA work?

NAFTA is a formal agreement that establishes clear rules for commercial activity between Canada, the United States, and Mexico. NAFTA is overseen by a number of institutions that ensure the proper interpretation and smooth implementation of the Agreements provisions.
3. What are the benefits of NAFTA? 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. 4. How can I make NAFTA work for my business?

NAFTA provides North American businesses with better access to materials, technologies, investment capital, and talent available across North America. For examples of companies that are succeeding under NAFTA, please see Success Stories.

5. What are the NAFTA rules of origin?

Each NAFTA country forgoes tariffs on imported goods originating in the other NAFTA countries. Rules of origin enable customs officials to decide which goods qualify for this preferential tariff treatment under NAFTA. The negotiators of the Agreement sought to make the rules of origin very clear so as to provide certainty and predictability to producers, exporters, and importers. They also sought to ensure that NAFTAs benefits are not extended to goods imported from non-NAFTA countries that have undergone only minimal processing in North America.
6. How do I obtain a NAFTA certificate of origin?

The procedures for presenting a claim to each NAFTA partner are different. To certify that goods qualify for the preferential tariff treatment under NAFTA, the exporter must complete a certificate of origin. A producer or manufacturer may also complete a certificate of origin to be used as a basis for an exporters certificate of origin. To make a claim for NAFTA preference, the importer must possess a certificate of origin at the time the claim is made. Further information on Customs procedures can be obtained by contacting the Customs administrations of each NAFTA country. For more information, please visit the Canada Border Services Agency, U.S. International Trade Administration, or Mexicos Ministry of the Economy.
7. Who is permitted temporary entry into another NAFTA country under the NAFTA rules?

Chapter 16 of NAFTA permits the temporary cross-border movement of business travelers within the NAFTA region. Four categories of travelers are eligible for temporary entry from one NAFTA country into another: business visitors, traders and investors, intra-company transferees, and professionals.
8. How did NAFTA affect tariff rates within North America?

On January 1, 2008, the last remaining tariffs were removed within North America. When implemented, NAFTA immediately lifted tariffs on the majority of goods produced by the NAFTA partners and called for the phased elimination, over 15 years, of most remaining barriers to cross-border investment and to the movement of goods and services between the three countries.
9. How can I obtain information on NAFTA Custom procedures?

Information on Customs procedures can be obtained by contacting the Customs administrations of each NAFTA country. For more information, please visit: Canada Border Services Agency, U.S. Customs and Border Protection, and Mexicos Ministry of the Economy.