The North American Free Trade Agreement (NAFTA) was created by the United States, Canada, and Mexico in 1994. The agreement was designed to promote trade and investment between the three countries by eliminating tariffs and trade barriers.
The negotiations for NAFTA began in 1986, during the Reagan administration, and continued for eight years, until 1994. The agreement was signed by President Bill Clinton, Canadian Prime Minister Jean Chrétien, and Mexican President Carlos Salinas de Gortari.
NAFTA has been a controversial agreement since its inception. Supporters argue that it has led to increased trade and economic growth in North America, and has created jobs and boosted the competitiveness of North American businesses.
Critics, however, argue that NAFTA has had negative effects on American and Canadian workers, particularly in the manufacturing sector, as companies have moved production to Mexico, where labor is cheaper. They also argue that NAFTA has contributed to the widening income gap in the United States and Canada, as some workers have lost their jobs or seen their wages decrease due to competition from Mexico.
Despite the controversy surrounding NAFTA, the agreement remains in place today. In 2018, the United States, Canada, and Mexico renegotiated NAFTA, resulting in the new United States-Mexico-Canada Agreement (USMCA), which includes updated provisions on intellectual property, labor, and the environment.
Overall, the creation and implementation of NAFTA has had a significant impact on North American trade and investment over the past few decades, and its legacy continues to be debated by policymakers, scholars, and the public.