North American Free Trade Agreement (NAFTA)
![two men, Kansas Farmers, stand facing Bob Dole and another man seated inside a truck. In the background is a field.](/sites/doleinstitute/files/styles/16_9_placeholder_/public/images/topics/NAFTA/NAFTA_ph_147_006_004.jpg?h=a92f03cd&itok=on_IgXW3)
Summary
The North American Free Trade Agreement was signed by the governments of Mexico, USA, and Canada during the Clinton administration and went into effect January 1, 1994. NAFTA eliminated barriers to trade such as tariffs, which in theory increases profits for businesses and reduces prices for consumers.