History of multilateral agreements between Canada, Mexico and the United States
The North American Free Trade Agreement
The North American Free Trade Agreement (NAFTA), signed by Prime Minister Brian Mulroney, Mexican President Carlos Salinas, and U.S. President George H.W. Bush, came into effect on January 1, 1994. NAFTA has generated economic growth and rising standards of living for the people of all three member countries. By strengthening the rules and procedures governing trade and investment throughout the continent, NAFTA has proved to be a solid foundation for building Canada’s prosperity.
The NAFTA superseded the Canada-U.S. Free Trade Agreements (CUSFTA). Negotiations towards the CUFTA began in 1986 and the agreement was in force by January 1, 1989. The two nations agreed to a historic agreement that placed Canada and the United States at the forefront of trade liberalization.
For more information, please visit: Canada-U.S. Free Trade Agreement
North American Agreement on Labour Cooperation
The North American Agreement on Labour Cooperation (NAALC) came into effect in January 1994. It is one of two parallel accords to the North American Free Trade Agreement between the United States, Canada, and Mexico. The agreement is administered by the Commission for Labour Cooperation, which consists of a Council of Ministers and a tri-national Secretariat, based in Washington D.C. Currently four provinces (Quebec, Alberta, Manitoba and Prince Edwards Island) are signatories to the NAALC through an Intergovernmental Agreement.
The Commission works in close cooperation with the National Administrative Offices (NAOs) established in each country to implement the Agreement and serve as the national point of contact. In Canada, the Office for Inter-American Labour Cooperation within the Labour Branch of Human Resources and Skills Development Canada acts as the Canadian NAO. The Canadian NAO also provides for the submission and receipt of public communications (complaints) on labour law matters arising in the territory of another Party and serves as the official review agency in Canada.
North American Agreement on Environmental Cooperation
The second parallel accord is the North American Agreement on Environmental Cooperation (NAAEC), which established the Commission on Environmental Cooperation (CEC) in 1994. The CEC is mandated to enhance regional environmental cooperation, reduce potential trade and environmental conflicts and promote the effective enforcement of environmental law. It also facilitates cooperation and public participation in efforts to foster conservation, protection and enhancement of the North American environment. It consists of three principal components:
- the Council (Environment Ministers)
- the Joint Public Advisory Committee (JPAC)
- the Secretariat, headquartered in Montreal.
It has an annual budget of US$9 million, with Canada, Mexico and U.S. contributing US$3 million per year, and is governed by consensus (not majority).
The is available on the CEC website.
Historical highlights
- The North American Free Trade Agreement (NAFTA), signed by Prime Minister Brian Mulroney, Mexican President Carlos Salinas, and U.S. President George H.W. Bush, came into effect on January 1, 1994.
- The NAFTA was built on the success of the Canada-U.S. Free Trade Agreement and provided a complement to Canada’s efforts through the World Trade Organization agreements by making deeper commitments in some key areas.
- When NAFTA came into force, the world's largest free-trade area was formed. The agreement has brought economic growth and rising standards of living for people in all three countries.
- The NAFTA, being the first comprehensive trade agreement of its type, has set a valuable example of the benefits of trade liberalization for the rest of the world.
- In the event of a dispute, the NAFTA directs the governments concerned to seek to resolve their differences amicably through the NAFTA’s committees and working groups or other consultations. If no mutually acceptable solution is found, the NAFTA provides for dispute settlement procedures. One of the principle elements of the NAFTA is the establishment of a clear set of rules for dealing with the settlement of disputes. The NAFTA was the first agreement to afford cross-border investors an impartial legal tribunal to address differences.
- Under the NAFTA, tariffs on all covered goods traded between Canada and Mexico were eliminated in 2008. Tariffs on covered goods traded between Canada and the United States became duty free on January 1, 1989, in accordance with the CUSFTA which was carried forward under NAFTA.
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