NAFTA

North American Free Trade Agreement Tratado de Libre Comercio de Amrica del Norte (Spanish) Accord de libre-change nord-amricain (French)

Secretariats Mexico City, Ottawa and Washington, D.C. Languages 3[show] Membership Canada, United States and Mexico Establishment - Formation January 1, 1994 Area - Total 21,783,850 km2 (1st) 8,410,792 sq mi - Water (%) 7.4 Population - 2010 estimate 456,416,628 (3rd) - Density 25.1/km2 (195th) 54.3/sq mi GDP (PPP) 2008 (IMF) estimate - Total $17,153,462 trillion (n/a) - Per capita $35,491 (n/a) GDP (nominal) 2008 (IMF) estimate - Total $16,792 trillion (n/a) - Per capita $35,564 (18th) Website http://www.nafta-sec-alena.org The North American Free Trade Agreement or NAFTA is an agreement signed by the governments of the United States, Canada, and Mexico creating a trilateral trade bloc in North America. The agreement came into force on January 1, 1994. It superseded the Canada-United States Free Trade Agreement between the U.S. and Canada. In terms of combined purchasing power parity GDP of its members, as of 2007 the trade block is the largest in the world and second largest by nominal GDP comparison. The North American Free Trade Agreement (NAFTA) has two supplements, the North American Agreement on Environmental Cooperation (NAAEC) and the North American Agreement on Labor Cooperation (NAALC) All remaining duties and quantitative restrictions were eliminated, as scheduled, on January 1, 2008. NAFTA created the world's largest free trade area, which now links 444 million people producing $17 trillion worth of goods and services.

Trade between the United States and its NAFTA partners has soared since the agreement entered into force.U.S. goods and services trade with NAFTA totaled $1.0 trillion in 2007 (latest data available). Exports totaled $452 billion; Imports totaled $568 billion. The U.S. goods and services trade deficit with NAFTA was $116 billion in 2007. The United States has $967 billion in total (two ways) goods trade with NAFTA countries (Canada and Mexico) during 2008. Goods exports totaled $412 billion; Goods imports totaled $555 billion. The U.S. goods trade deficit with NAFTA was $143 billion in 2008. Trade in services with NAFTA (exports and imports) totaled $106.8 billion in 2007 (latest data available). Services exports were $66.6 billion; Services imports were $40.2 billion. The U.S. services trade surplus with NAFTA was $26.5 billion in 2007.

Background
In 1988 Canada and the United States signed the Canada-United States Free Trade Agreement after the US Congress approved implementing legislation. The American government then entered into negotiations with the Mexican government for a similar treaty, and Canada asked to join the negotiations in order to preserve its perceived gains under the 1988 deal.[1] The international climate at the time favoured expanding trade blocs, and the Maastricht Treaty which created the European Union was signed in 1992. Exports The NAFTA countries (Canada and Mexico), were the top two purchasers of U.S. exports in 2008. (Canada $261.2 billion and Mexico $151.2 billion). U.S. goods exports to NAFTA in 2008 were $412.4 billion, up 7.2% ($27.6 billion) from 2007, up 149% from 1994 (the year prior to Uruguay Round) and up 190% from 1993 (the year prior to NAFTA). U.S. exports to NAFTA accounted for 32.0% of overall U.S. exports in 2008, down slightly from 32.2% in 1994. The top export categories (2-digit HS) in 2008 were: Machinery ($63.5 billion), Vehicles (parts) ($59.5 billion), Electrical Machinery ($49.2 billion). and Mineral Fuel and Oil ($27.9 billion), and Plastic ($22.3 billion), U.S. exports of agricultural products to NAFTA countries totaled $32.3 billion in 2008. Leading categories include: coarse grains ($3.2 million), red meats, fresh/chilled/frozen ($3.1 billion), soybeans ($1.9 billion), fresh fruit ($1.8 billion), snack foods (excluding nuts) ($1.7 billion), and fresh vegetables ($1.7 billion). U.S. exports of private commercial services* (i.e., excluding military and government) to NAFTA were $66.6 billion in 2007 (latest data available), up 13.2% ($7.8 billion) from 2006, and up 135% ($38.2 billion) since 1994. Imports

The NAFTA countries were the largest and third largest suppliers of goods imports to the United States in 2008. (Canada $339.5 billon, and Mexico $215.9 billion). U.S. goods imports from NAFTA totaled $555.4 billion in 2008, up 5.2% ($27.7 billion), from 2007, up 212% from 1994, and up 268% from 1993. U.S. imports from NAFTA accounted for 26.4% of overall U.S. imports in 2008, down from 26.9% in 1994. The five largest categories in 2008 were Mineral Fuel and Oil (crude oil) ($157.8 billion), Vehicles ($79.7 billion), Electrical Machinery ($63.5 billion), Machinery ($46.5 billion), and Special Other (returns) ($14.3 billion). U.S. imports of agricultural products from NAFTA countries totaled $28.9 billion in 2008. Leading categories include: fresh vegetable ($3.9 billion), snack foods, (including chocolate) ($3.4 billion), live animals ($2.3 billion), processed fruit and vegetables ($2.0 billion), and wine and beer ($1.9 billion). U.S. imports of private commercial services* (i.e., excluding military and government) were $40.2 billion in 2007 (latest data available), up 4.8% ($1.8 billion) from 2006, and up 127% ($22.4 billion) since 1994. Trade Balances The U.S. goods trade deficit with NAFTA was $143.1 billion in 2008, a 0.1% increase ($99 million) over 2007 (latest data available). The U.S. goods trade deficit with NAFTA accounted for 17.5% of the overall U.S. goods trade deficit in 2008, up from 8.7% in 1994. The United States has a services trade surplus of $26.5 billion with NAFTA countries in 2007 (latest data available). Investment U.S. foreign direct investment (FDI) in NAFTA Countries (stock) was $348.7 billion in 2007 (latest data available), up 11.3% from 2006. U.S. direct investment in NAFTA Countries is in the manufacturing, finance, nonbank holding companies and mining sectors. NAFTA Countries FDI in the United States (stock) was $219.2 billion in 2007 (latest data available), up 21.4% from 2006 NAFTA countries direct investment in the U.S. is in the finance, manufacturing, and banking sectors. NAFTA related information is available on the right.