Summary: North American Free Trade Agreement (NAFTA):
The trade agreement between the United States, Canada, and Mexico, signed in August 1992 and effective from January 1994. The first trade pact of its kind to link two highly industrialized countries to a developing one, it created a free market of 360 million people, with a total GDP of $6.45 trillion. Tariffs were to be progressively eliminated over a 10-to-15-year period and, as a result, investment into low-wage Mexico by Canada, the United States, and other foreign nations progressively increased. Chile was invited to join in December 1994.

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