North American Free Trade Agreement
NAFTA or North American Free Trade Agreement, is an agreement that allows goods and
services to travel between the United States, Canada, and Mexico without a quota system, import
tax or other restrictions. One of the most important provisions of the agreement relates to the
automotive sector in which NAFTA has revolutionized. The new agreement provides rules for the
supply of materials in the United States and North America and includes an item that forces Mexico
to increase the number of employees in this sector to close the gap with its northern neighbors who
pay higher wages. Canada agrees to have more facilitation in the production and prices of milk
and poultry and guarantees Canadian farmers stable returns to annual quotas and import taxes up
to 275%. This facilitation will allow greater access for US and Mexican producers to the Canadian
