The paper focuses analyzing the impact of NAFTA on trade creation and trade navigation. Using the random effects model and the composite data base 1990-2008 period, the author gives some findings as follows: 1 / The establishment of NAFTA led to trade creation, as that bilateral trade between member countries is enhanced. 2 / The effect of NAFTA diverted trade is not clear. 3 / Other factors such as GDP, geographical distance between countries, language, culture etc .. were impacted on trade between the countries.