Article 102 of the nafta sets out its purpose. There were seven concrete objectives. As early as 1984, President Ronald Reagan passed the Trade and Customs Act, which allowed the president to negotiate free trade agreements more quickly. Canadian Prime Minister Mulroney supported the President and the United States of Canada. The free trade agreement was finally signed in 1988; It came into force a year later. Nevertheless, the “Most Favored Nation” (MFN) clause played an important role in nafta. Under NAFTA, all co-signed countries are granted MFN status, which means that they have to treat all parties on a single level in terms of trade. Thanks to the MFN, countries are not allowed to favour investors from non-NAFTA countries or to show greater favours towards foreign investors. In fact, they all have to be treated the same in the agreement. A “secondary agreement” reached in August 1993 on the application of existing domestic labour law, the North American Convention on Labour Cooperation (NAALC) , was severely restricted. With regard to health and safety standards and child labour law, it excluded collective bargaining issues, and its “control teeth” were only accessible at the end of a “long and painful” dispute.  The obligations to enforce existing labour law have also raised questions of democratic practice.
 The Canadian anti-NAFTA coalition Pro-Canada Network suggested that guarantees of minimum standards in the absence of “extensive democratic reforms in the [Mexican] courts, unions and government” would be of no use.  However, subsequent evaluations indicated that NAALC`s principles and complaint mechanisms “created a new space for princes to form coalitions and take concrete steps to articulate the challenges of the status quo and promote the interests of workers.”  Two fundamental additions to NAFTA – the North American Labour Cooperation Agreement and the North American Agreement on Environmental Cooperation – have had a significant impact on the effectiveness of the agreement. On September 30, 2018, an agreement was reached when the NAFTA amendments were renegotiated. The next day, a renegotiated version of the agreement, called the U.S.-Mexico-Canada Agreement (USMCA), was published. In November 2018, at the G20, the USMCA was signed by President Trump, Canadian Prime Minister Justin Trudeau and then-Mexican President Enrique Pea Nieto. The overall effect of the agricultural agreement between Mexico and the United States is controversial. Mexico has not invested in the infrastructure needed for competition, such as efficient railways and highways. This has led to more difficult living conditions for the country`s poor. Mexico`s agricultural exports increased by 9.4% per year between 1994 and 2001, while imports increased by only 6.9% per year over the same period.  Clinton signed it on December 8, 1993.
The agreement came into force on 1 January 1994.   At the signing ceremony, Clinton paid tribute to four people for their efforts to reach the historic trade agreement: Vice President Al Gore, Council of Economic Advisers Chair Laura Tyson, National Economic Council Director Robert Rubin and Republican Congressman David Dreier.  Clinton also said, “NAFTA means jobs.