The North American Free Trade Agreement (NAFTA) and U.S. Agriculture

Abstract

[Excerpt] The North American Free Trade Agreement (NAFTA) entered into force on January 1, 1994 (P.L. 103-182), establishing a free trade area as part of a comprehensive economic and free trade agreement among the United States, Canada, and Mexico. Although some industries may have reduced their U.S. operations, in general, NAFTA is considered to have benefitted the United States economically as well as strategically in terms of North American relations. The U.S. food and agricultural sectors, which is the focus of this report, has benefitting especially from NAFTA. The U.S. Department of Agriculture (USDA) and many agricultural industry groups claim that NAFTA has positively affected U.S. agricultural markets. NAFTA continues to be of interest to Congress given continued strong trilateral trade and investment ties and the agreement’s significance for U.S. trade policy.