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 not allowed either.
Objectives of NAFTA
- Eliminate trade barriers between member countries;
- End of customs barriers;
- Reduce import and export trade costs among member countries;
- To develop mechanisms that defend the intellectual property produced within the member countries;
Nafta: fuel source
The word “naphtha” can also mean a derivative of petroleum used as fuel. Also considered one of the raw materials for obtaining ethane, propene, benzene and “synthesis gas”, used for the production of the gas from domestic and commercial kitchens.