NAFTA. In 1993 the United States, Canada, and Mexico signed the North American Free
Trade Agreement. Objections by labor unions in the United States (and 1992 and 1996 Reform Party presidential candidate Ross Perot) were drowned out in torrent of support by the American corporate community, Democrats and Republicans in Congress, President Bill Clinton, and former President George H. W.Bush. NAFTA envisions the removal of tariffs on virtually all products by all three nations over a period of 10 to 15 years. It also allows banking, insurance, and other financial services to cross these borders Table 9-l). NAFTA has succeeded in increasing trade between all three nations. The jobs lost by the United States to Mexico have been in lower-paying industries, while the jobs gained'have been in higher-paying industries.
Free Trade Area of the Americas. Currently the United States and the nations of North,
Central, and South America are engaged in negotiations designed to create a free trade area
TIABLE 9-1 Major Provisions of NAFTA NAFTA is the model of U.S.-backed free trade agreements.