CRS Report for Congress: NAFTA at 20: Overview and Trade Effects
Book Details
PublisherBiblioGov
ISBN / ASIN1293274267
ISBN-139781293274262
AvailabilityUsually ships in 24 hours
Sales Rank3,341,178
MarketplaceUnited States 🇺🇸
Description
The North American Free Trade Agreement (NAFTA) entered into force on January 1, 1994. The
agreement was signed by President George H.W. Bush on December 17, 1992, and approved by
Congress on November 20, 1993. The NAFTA Implementation Act was signed into law by
President William J. Clinton on December 8, 1993 (P.L. 103-182). The overall economic impact
of NAFTA is difficult to measure since trade and investment trends are influenced by numerous
other economic variables, such as economic growth, inflation, and currency fluctuations. The
agreement may have accelerated the trade liberalization that was already taking place, but many
of these changes may have taken place with or without an agreement. Nevertheless, NAFTA is
significant because it was the most comprehensive free trade agreement (FTA) negotiated at the
time and contained several groundbreaking provisions. A legacy of the agreement is that it has
served as a template or model for the new generation of FTAs that the United States later
negotiated and it also served as a template for certain provisions in multilateral trade negotiations
as part of the Uruguay Round.
The 113th Congress faces numerous issues related to international trade. Canada and Mexico are
the first and third largest U.S. trading partners, respectively. With the two countries participating
in the negotiations to conclude a Trans-Pacific Partnership (TPP) free trade agreement among the
United States and 10 other countries, policy issues related to NAFTA continue to be of interest for
Congress. If negotiations progress, a TPP agreement could affect the rules and market access
commitments governing North American trade and investment since NAFTA entered into force. A
related trade policy issue in which the effects of NAFTA may be explored is the possible renewal
of Trade Promotion Authority (TPA; formerly known as "fast-track authority") to provide
expedited procedures for the consideration of bills to implement trade agreements.
agreement was signed by President George H.W. Bush on December 17, 1992, and approved by
Congress on November 20, 1993. The NAFTA Implementation Act was signed into law by
President William J. Clinton on December 8, 1993 (P.L. 103-182). The overall economic impact
of NAFTA is difficult to measure since trade and investment trends are influenced by numerous
other economic variables, such as economic growth, inflation, and currency fluctuations. The
agreement may have accelerated the trade liberalization that was already taking place, but many
of these changes may have taken place with or without an agreement. Nevertheless, NAFTA is
significant because it was the most comprehensive free trade agreement (FTA) negotiated at the
time and contained several groundbreaking provisions. A legacy of the agreement is that it has
served as a template or model for the new generation of FTAs that the United States later
negotiated and it also served as a template for certain provisions in multilateral trade negotiations
as part of the Uruguay Round.
The 113th Congress faces numerous issues related to international trade. Canada and Mexico are
the first and third largest U.S. trading partners, respectively. With the two countries participating
in the negotiations to conclude a Trans-Pacific Partnership (TPP) free trade agreement among the
United States and 10 other countries, policy issues related to NAFTA continue to be of interest for
Congress. If negotiations progress, a TPP agreement could affect the rules and market access
commitments governing North American trade and investment since NAFTA entered into force. A
related trade policy issue in which the effects of NAFTA may be explored is the possible renewal
of Trade Promotion Authority (TPA; formerly known as "fast-track authority") to provide
expedited procedures for the consideration of bills to implement trade agreements.
