North American Free Trade Agreement
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Overview
In 1990, United States and Mexico started negotiations about opening their borders to a free trade agreement. Later Canada joined the US and Mexico in their talks to opening the largest free trade agreement in the world. The North American Free Trade Agreement (NAFTA) surpassed the European Union as an economic power. NAFTA has a total population of 350 million and GNP of $4 trillion. The negotiations between the three countries were concluded on August 12, 1992 and were approved by US Senate and the Mexican Senate in November 1993. The approval than was followed by Canadian government on December 2, 1993.
The agreement is expected to improve the markets, labor, technology, and raw materials in Canada, United States, and Mexico. According to the Institute for International Economics, NAFTA will improve employment and wages significantly in all three countries. Before NAFTA the Mexican economy was suffering from declining real wages, soaring population, high unemployment, and a huge national debt. Mexico is the United States third largest trading partner in the world, consisting of about $52 billion per year...