The North American Free Trade Agreement (NAFTA) is an agreement signed by Canada, Mexico, and the United States, creating a trilateral trade bloc in North America. It eased restrictions on commerce between the United States, Canada and Mexico by providing duty-free trade on multiple classes of goods and introducing new regulations to encourage cross-border corporate investment.
However, the migration of workers from Mexico City and further south in numbers not easily accommodated in small border towns produced overpopulated slums with high living costs for the Mexican workers. Nonetheless, some argue that the competition between Asia and the U.S. could have become worse without the temporary low-cost labor available to U.S. companies in Mexico. NAFTA may have eliminated tariffs between the U.S., Canada and Mexico, but it didn't do away with the numerous customs regulation that can stifle trade. Rule of origin regulations decide whether a good qualifies for trade under NAFTA guidelines, and exporters must complete certificate of origin paperwork.
Republican presidential front-runner Donald Trump says he wants to be able to slap tariffs on U.S. companies that choose to make their products overseas, and he's willing to violate existing trade deals to do it. "We will either renegotiate it or we will break it," Trump said of the landmark free trade agreement between the U.S., Canada and Mexico, panning it as "a disaster." - Trump said.
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