NAFTA Law and Legal Definition
NAFTA means North American Free Trade Agreement. This is a trading agreement between the U.S., Canada, and Mexico, which came into effect on January 1, 1994. NAFTA created the world's largest free trade area. The purpose of NAFTA was to eliminate restrictions on agricultural trade and investment between the U.S., Mexico, and Canada. The farmers and consumers in North America are benefited pursuant to the NAFTA. The implementation of NAFTA brought the immediate elimination of some tariffs, and the remaining tariffs were eliminated in a phased manner. All remaining duties and quantitative restrictions were eliminated, as scheduled, on January 1, 2008. NAFTA also aims to eliminate non-tariff trade barriers.
