📦 NAFTA was never just tariffs

What you’ll learn

1. Two clocks, one midnightPlace NAFTA on a dated calendar and in the San Cristóbal zócalo on the same midnight, and show it as the third North American trade paper, not the first.In force 1 January 1994, the morning EZLN occupies Chiapas county seats. Entered into 17 December 1992; Implementation Act P.L. 103-182 signed 8 December 1993. CUSFTA had run since 1 January 1989.
2. Six jobs, not oneRead Article 102 as six objectives, put tariffs on USTR's 2008 clock with Canadian farm exceptions, show the auto origin timetable, and split Chapter 11 from Chapter 19.Investment and disputes are objectives. Most duties gone by 2008 except some Canadian agriculture. Auto RVC reaches 62.5 percent in 2002. An investor claims; a binational panel replaces a court.
3. The House priceShow labor and environment as 1993 side agreements bought for a 234-200 House, then read Articles 1116 and 1904, and refuse both 1993 speeches as CRS's modest-effect verdict.NAALC and NAAEC, August–September 1993. 1116 lets an investor claim. 1904 replaces judicial review. CRS 2017: no massacre, no miracle, real adjustment costs.
4. The paper that replaced the paperDate USMCA's 1 July 2020 replacement, show the origin test surviving at 75 percent, and send the reader to read 1116 and 102 tonight.P.L. 116-113. The legal test that makes a car North American did not die; the number changed. Tonight's hunt is two articles and who the paper lets into the room.

Questions this course answers

Grounded in trusted sources

• 19 U.S.C. § 3311. Congress approves the North American Free Trade Agreement entered into on December 17, 1992, with Canada and Mexico, and the statement of administrative action submitted November 4, 1993. President authorized to exchange notes providing for entry into force on or after January 1, 1994. Pub. L. 103-182, title I, § 101, Dec. 8, 1993, 107 Stat. 2061. House note: Presidential Memorandum on Implementation, Dec. 27, 1993, directing notes for entry into force Jan. 1, 1994. https://uscode.house.gov/view.xhtml?req=granuleid:USC-2012-title19-section3311
• H.R. 3450, 103rd Congress, North American Free Trade Agreement Implementation Act. House passed 17 November 1993 by recorded vote 234-200 (Roll no. 575). Senate passed 20 November 1993 by Yea-Nay 61-38 (Record Vote No: 395). Signed by the President 8 December 1993. Became Public Law 103-182. https://www.congress.gov/bill/103rd-congress/house-bill/3450/all-actions
• Congressional Research Service, The North American Free Trade Agreement (NAFTA), R42965, updated 24 May 2017 (M. Angeles Villarreal and Ian F. Fergusson). Signed by President George H. W. Bush 17 December 1992; approved by Congress 20 November 1993; Implementation Act signed by President Clinton 8 December 1993 (P.L. 103-182); entered into force 1 January 1994. Overall economic impact difficult to measure. Did not cause the huge job losses feared by critics or the large economic gains predicted by supporters; net overall U.S. effect relatively modest because Canada–Mexico trade is a small share of U.S. GDP; worker and firm adjustment costs. Likely accelerated and locked in Mexican liberalization already underway. Auto Pact 1965; CUSFTA in force 1 January 1989. https://www.congress.gov/crs-product/R42965
• Congressional Research Service, North American Free Trade Agreement (NAFTA), IF10047, updated 14 June 2018. Negotiations began February 1991. Signed by President Bush 17 December 1992. Side agreements signed August 1993. Implementation Act approved by Congress 20 November 1993. Entered into force 1 January 1994 (P.L. 103-182). Eight parts, 22 chapters. First U.S. FTA linking two advanced economies with a lower-income country. Since entry into force, U.S. merchandise trade with Canada and Mexico had more than tripled (as of that writing). https://www.congress.gov/crs-product/IF10047
• Congressional Research Service, The United States-Mexico-Canada Agreement (USMCA), R44981, updated 29 May 2024 (and earlier 2 March 2020 edition). USMCA entered into force 1 July 2020, replacing NAFTA. Signed 30 November 2018; House 385-41 (19 December 2019); Senate 89-10 (16 January 2020); signed into law 29 January 2020 (P.L. 116-113). Retains most NAFTA market-opening measures with notable changes to auto rules of origin, dispute settlement, investment, IPR. https://www.congress.gov/crs-product/R44981
• Office of the United States Trade Representative, North American Free Trade Agreement (NAFTA) archive. U.S.–Canada FTA entered into force 1 January 1989. Bilateral talks with Mexico began 1991; Canada joined. NAFTA entered into force 1 January 1994. Tariffs eliminated progressively; all duties and quantitative restrictions, with the exception of those on a limited number of agricultural products traded with Canada, were eliminated by 2008. https://ustr.gov/about-us/policy-offices/press-office/ustr-archives/north-american-free-trade-agreement-nafta
• U.S. Customs and Border Protection, NAFTA Guide to Customs Procedures: Automotive Products. Regional value content for autos and light vehicles, engines and transmissions: 50 percent net cost at entry into force, 56 percent on 1 January 1998, 62.5 percent on 1 January 2002. Other vehicles and many parts: 50 / 55 / 60 percent. Also CBP NAFTA overview: immediately lifted tariffs on the majority of goods; gradual elimination over 15 years of most remaining barriers to investment and to movement of goods and services. https://www.cbp.gov/trade/nafta/guide-customs-procedures/provisions-specific-sectors/automotive-products
• North American Free Trade Agreement, Chapter One (Objectives), Articles 101–102. Art. 101 establishes a free trade area consistent with GATT Article XXIV. Art. 102(1) lists six objectives, including (a) eliminate barriers to trade in goods and services, (c) increase substantially investment opportunities, (d) IP protection, (e) procedures for implementation, administration, and disputes. Official texts: OAS SICE and the Canada–Mexico–United States Secretariat. http://www.sice.oas.org/trade/nafta/chap-01.asp ; https://can-mex-usa-sec.org/secretariat/agreement-accord-acuerdo/nafta-alena-tlcan/index.aspx?lang=eng

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