North American Free Trade Agreement (NAFTA)

The North American Free Trade Agreement (NAFTA) was a trade agreement between the United States, Canada, and Mexico that came into effect on January 1, 1994. NAFTA aimed to eliminate trade barriers, such as tariffs and import quotas, to facilitate the free movement of goods and services across North America. It significantly increased trade and investment among the three countries. NAFTA was replaced by the United States-Mexico-Canada Agreement (USMCA) in July 2020, which introduced modernized trade rules and updated provisions.