On July 1, 2020, the North American Free Trade Agreement, or NAFTA, expired, and the United States-Mexico-Canada Agreement (USMCA) took its place. NAFTA had a good run. It went into effect in 1994 and created the world’s largest free trade zone between the United States, Canada and Mexico.
The goal of NAFTA was to bolster trade by reducing or eliminating most trade barriers (primarily in the form of tariffs), which it did. Between 1993 and 2017, trade between the three countries rose from $290 billion to more than $1.3 trillion.
Now, the USMCA takes its place. The new agreement modernizes NAFTA and addresses topics that were less relevant in 1994, such as e-commerce and the flow of international data.