..."Our free trade agreement [NAFTA], of course, is about more than just economic integration. It is about improving quality of life, growth, and stability. It closely links our societies, not only through trade, but also travel, tourism, cultural and intellectual exchange... It encourages needed reforms and economic diversification, transparency and good governance. And, perhaps most significantly, it acts as a standard for other free trade agreements. Indeed Mexico has become a model for free trade in Latin America."
Remarks by U.S. Ambassador, Antonio O. Garza Jr., at the Seminar "Reflecting on North American Integration: NAFTA, FTAA, and the Doha Round". Mexico City. September 27, 2004."
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GENERAL BACKGROUND
The NAFTA
was negotiated in 1991 and 1992; side agreements
on labor and
environmental matters were
completed in 1993; the agreements were approved by the respective legislatures in
late 1993; and the agreements went into force on Jan. 1, 1994. Under the agreements, trade
and investment restrictions are being eliminated over a 15 year period, with most restrictions
eliminated in the early years of the agreement.
NAFTA is broad in scope and incorporates a level of disciplines. In addition
to gradually eliminating all tariffs on North American-made goods, NAFTA:
- eliminates or imposes strict rules on a range of non-tariff barriers, including technical barriers to trade;
- opens government purchasing regimes to firms in all three countries;
- eliminates restrictions on foreign investment and ensures non-discriminatory treatment for
local companies that are owned by investors in other NAFTA countries;
- eliminates barriers that prevent services companies from operating across North American
borders, including in such key sectors as financial services;
- provides rules preventing governments from using monopolies and state enterprises to
restrict trade;
- facilitates border-crossing for business persons in all three countries;
- provides comprehensive rules to protect intellectual property rights; and
- provides three distinct dispute settlement mechanisms.
The NAFTA and its agreements provide a comprehensive framework of
rules that seek to reduce or eliminate trade barriers while promoting worker rights and
enhancing environment protection across North America.
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