On June 12, 1991, the trade ministers of Canada, Mexico, and the United States met in Toronto, Canada to open negotiations for the North American Free Trade Agreement (NAFTA). It was an agreement between the three countries that would gradually remove all tariffs and other trade barriers on most goods produced and sold in North America. If successful, the agreement promised to make the whole North American continent into one economic zone. A little more than a year later, the three trade ministers met again in Washington, to put the finishing touches on the agreement. In just over a year the negotiators from the three countries had successfully met the challenge and put together a new trading frame work for North America. And on January 1, 1994, the North American Free Trade Agreement was passed. NAFTA promised to have a major impact on the economies of the three nations. The results of NAFTA have proven to be beneficial for the economies of Canada, Mexico, and United States. .
Canada's goals in the negotiation of NAFTA were very simple. They wanted to improve their access for their goods and services to Mexico and the United States. Canada wanted to guarantee their position as a prime location for investors seeking to serve all of North America. NAFTA realized these objectives set by Canada and supplied Canada with a new and sharper edge to their international competitiveness. The agreement also set a path for widening Canada's trade horizons, while also giving them a bigger stage on which to demonstrate their economic expertise and leadership. A major advantage for Canada was the reduction of Mexican barriers, which provided new markets and opportunities for Canadian goods and services. Canadian firms have now been able to participate in, and expand sales in sectors that were previously highly restricted, such as autos, financial services, trucking, energy and fisheries. The Mexican tariffs and import licensing requirements that were eliminat!.