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NAFTA |
North American Free Trade Agreement. In June 1991 the United States, Canada and Mexico initiated negotiation of a comprehensive free trade agreement aimed at: eliminating over a mutually agreed upon time period all tariffs on trade between the three countries; reducing impediments to trade in services; removing most restrictions on foreign investment among the signatory countries; ensuring adequate intellectual property protection. The negotiations were concluded in August 1992, and the draft text is structured along the lines of the U.S.-Canada Free Trade Agreement. The Clinton administration negotiated supplemental agreements on labour and environmental issues, and Congress approved the whole package of NAFTA agreements in November 1993. NAFTA went into effect January 1, 1994. |
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non-market economy |
A national economy in which the government seeks to determine economic activity largely through a mechanism of central planning, as in the former Soviet Union, in contrast to a market economy which depends heavily upon market forces to allocate productive resources. In a ‘non-market’ economy, production targets, prices, costs, investment allocations, raw materials, labour, international trade and most other economic aggregates are manipulated within a national economic plan drawn up by a central planning authority; hence, the public sector makes the major decisions affecting demand and supply within the national economy. |