Introduction

On January 1, 1994, the North American Free Trade Agreement (NAFTA) was officially implemented. One of the main benefits of the Agreement is the elimination of tariffs between the countries on all qualifying goods by the year 2003. NAFTA creates a free trade area, not an economic union market, such as the European Union. Therefore, customs administration will still exist, and in a country like Mexico (which still depends largely on customs’ duties to help run its government), the customs activity has been and will continue to be intensive. You must comply with the NAFTA regulations and the countries’ import regulations in order to take advantage of the market. By satisfying your customers, you can gain a foothold into one of the most exciting and rewarding export opportunities available today.

NAFTA was intended for not only Canada, Mexico and the United States; eventually all Latin American countries will be invited to join. Thus, companies that are currently involved in exporting to NAFTA countries increase their ability to be internationally competitive in the future, when all or most of the Latin and South American countries will also be "playing by the same rules."

The primary objectives of NAFTA are detailed in the Agreement’s principles and rules. These include the following key points:

• Eliminate trade barriers and facilitate the cross border movement of both goods and services between the NAFTA countries.

• Promote conditions of fair competition in the free trade area.

• Increase substantial investment opportunities within the territory.

• Provide protection and enforcement of intellectual property rights in each party’s territory.

• Create fair and amicable solutions to resolve disputes within the application and administration of the agreement.

• Establish a framework for further trilateral, regional, and multilateral cooperation to build on the benefits of NAFTA.