NAFTA - North American Free Trade Agreement
Implemented on January 1, 1994, the North American Free Trade Agreement (NAFTA) is an agreement among the United States, Canada and Mexico designed to remove tariff barriers between the three countries.
NAFTA was the first trade agreement amongst developed countries to include investor-state dispute settlement (ISDS) provisions. ISDS provisions protect U.S. companies investing abroad, as it is a neutral, international arbitration procedure that seeks to provide an impartial, law-based approach to resolve conflicts.
- NAFTA has helped facilitate the interdependent North American energy markets and spur economic growth.
- The lower-cost crude oils in Canada and Mexico are largely refined in the United States, resulting in thousands of high-paying jobs.
- Various forms of ISDS provisions are now a part of more than 3,000 agreements worldwide, including 50 involving the United States.