Meaning of NAFTA

What is NAFTA?

NAFTA is the acronym in English for the North American Free Trade Agreement, an economic bloc formed by the United States of America, Canada and Mexico.

The main goal with the creation of NAFTA was to reduce or eliminate trade barriers between the three countries that make up North America. The formation of the economic bloc emerged as an attempt to compete with the European Union (EU), a bloc formed by European countries and which proved to be a great success in the world economic scenario.
NAFTA was created in 1993 but only came into operation as of January 1, 1994, completing more than 20 years of activity.

Among the main objectives of NAFTA is the end of customs and economic barriers, reducing trade costs among member countries.

However, contrary to what happens in the European Union, NAFTA does not have a single currency among member countries and free transit between citizens is also not allowed.

Objectives of NAFTA

  • Eliminate trade barriers between member countries;
  • End of customs barriers;
  • Reduce import and export trade costs among member countries;
  • Develop mechanisms to defend intellectual property produced within member countries;

NAFTA: fuel source

The word “naphtha” can also mean an oil derivative used as fuel. It is also considered one of the raw materials for the production of ethane, propene, benzene and “synthesis gas”, used for the production of piped gas from domestic and commercial kitchens.

Other Meanings of NAFTA

Acronym Definition
NAFTA North American Fareston versus Tamoxifen Adjuvant
NAFTA North American Festival of Traditional Arts
NAFTA North American Foreign Trade Association
NAFTA North American Free Trade Agreement
NAFTA North American Free Trade Area
NAFTA North Atlantic Free Trade Area