The North American Free Trade Area (NAFTA) is comprised of developed and developing countries in the process of regional economic agglomeration.
By the United States, Canada and Mexico composed of three countries in the August 12, 1992 on the “North American Free Trade Agreement” to reach an agreement, and in the same year on December 17 by the leaders of the three countries were formally signed in their respective countries. January 1, 1994, the agreement came into effect, the North American Free Trade Area announced the establishment. The three Member States must abide by the principles and rules of the Agreement, such as national treatment, MFN treatment and procedural transparency, in order to eliminate trade barriers. National goods in the free trade zone can circulate and reduce tariffs, while countries outside the trade zone still maintain their original tariffs and barriers. US and Mexico due to the North American Free Trade Area makes Mexico exports to the United States to benefit the most.
At present, all countries in the world attach great importance to the establishment and development of free trade zones to serve the economic development of their own countries, and the emergence and development of free trade zones also has a profound reason and unique role. The number of free trade zones on a global scale is increasing, and the issues are rapidly expanding and the level of liberalization is significantly improved.
Caribbean Free Trade Area in response to the new situation of world economic development, is preparing to launch the World FTA. The World Free Trade Area Alliance will help promote the overall liberalization of the world’s trade zones, actively promote the establishment of free trade zones around the world, promote a substantial increase in the volume of foreign trade in the world, radiation five continents of the global free trade zone Network, so that most of the foreign trade, two-way investment to achieve liberalization and facilitation.
North American Free Trade Area has become a member of the World Federation of Free Trade Zone.