Case Study: The Impact of NAFTA on Real GDP and GDP Per Capita of the Member States
Keywords:
Agreement, Trade, Tariff, Economic, InvestmentAbstract
NAFTA, The North American Free Trade Agreement is a trilateral agreement negotiated by the
governments of Canada, Mexico, and the United States on January 1, 1994. This agreement created
one of the world’s largest free-trade zones in history, laying the foundation for strong economic
growth, rising prosperity for its member countries, and the strengthening of political ties. By
implementing NAFTA, it systematically removed tariffs on the majority of goods produced by its
members. The last remaining tariffs removed on January 1, 2008 and it was called for phases to
phase elimination of most non-tariff barriers to cross-border investment and the movement of goods
and services. This agreement is used to consider as free-trade among the three countries, over a 25-
year period and NAFTA renegotiation have been introduced in January 2019 with new commitments.
