Glossary: North American Free Trade Agreement (NAFTA)
DEFINITION:
A free trade agreement comprising Canada, Mexico, and the United States. Tripartite negotiations to form NAFTA began among these countries in June 1991 and were concluded in August 1992. The United States Congress finally ratified NAFTA in November 1993, and the agreement went into effect on January 1, 1994. NAFTA was expected to create a free trade area with a combined population of 356 million and a GDP (q.v.) of more than US$6 trillion. Chile was expected to be incorporated into NAFTA as of January 1, 1995.