North American Free Trade Agreement

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(NAFTA) A multilateral agreement negotiated by the United States, Canada and Mexico that sets forth agreements to lower and/or eliminate unfair trade barriers that affect the trade of goods and services between the three countries. NAFTA entered into force on January 1, 1994. The agriculture portion of NAFTA effectively is three bilateral agreements; U.S./Mexico, Mexico/Canada, and U.S./Canada. The U.S.-Canada agricultural agreement in NAFTA was negotiated previously as part of the U.S.-Canada Free Trade Agreement.

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