NORTH AMERICAN FREE TRADE AGREEMENT ("NAFTA")

By Norka M. Schell
International Law Lawyer
Law Offices of Norka M. Schell, LLC
Tel. (212)564-1589

In a global economy, the movement of persons across the borders is critical to the movement of goods and facilitation of investments. The United States-Canada Free Trade Agreement ("FTA"), implemented on January 1, 1989, provided for the freer movement not only of goods but also of business persons. With the North American Free Trade Agreement ("NAFTA"), implemented on January 1, 1994, the United States and Canada included Mexico in their preferential trading relationship. The goal of NAFTA is to eliminate all customs duties on all goods originating in Canada, Mexico, or the United States over a transition period. 

The purpose of NAFTA is to eliminate all customs duties on all goods originating in Canada, Mexico, or the United States over a transition period. 

As of January 1, 2008, all tariffs and quotas were eliminated on U.S. exports to Mexico and Canada under the NAFTA. 

The NAFTA provides coverage to services with the exception of aviation transport, maritime, and basic communications. The agreement also provide intellectual property rights protection in patent, trademark, and copyrighted material.

With regard to the movement of persons, the purpose of NAFTA is not to harmonize immigration regimes or create a common labor market or a passport union among the United States, Canada, and Mexico. Rather, each of the three countries intends to maintain its sovereignty over immigration to protect its domestic labor market. The NAFTA provisions affect only four categories of the business persons: (1) business visitors - admitted as 
B-1s; (2) traders and investors - admitted as E-1s and E-2s; (3) intra-company transferees - admitted as L-1s; and (4) professional - admitted as TNs.  

For more information on NAFTA, please contact our firm to speak with a lawyer.