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AP Explains: What is NAFTA?



(18 May 2017) Donald Trump called NAFTA the “worst trade deal maybe ever signed anywhere.” So he wants to renegotiate it — or kill it altogether.
So just what is NAFTA?
The letters stand for North American Free Trade Agreement — N-A-F-T-A. Starting in 1994, it bound the United States, Canada and Mexico into a single free-trade zone. That means avocados from Mexico, auto parts from the United States, oil from Canada and thousands of other products can cross borders tax free within the NAFTA zone.
NAFTA, which was signed by President Bill Clinton, was intended to encourage trade between the three countries.
Canada was already America’s top trading partner. So the agreement’s big goal was to link Mexico to its northern neighbors and modernize its economy. By creating good jobs in Mexico, the agreement was expected to reduce the number of Mexicans crossing illegally into the United States to find work.

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