The Canada-United States Free Trade Agreement (CUSFTA) was established in 1989 to promote trade and economic cooperation between Canada and the United States. This agreement aimed to eliminate tariffs and reduce trade barriers, allowing for a smoother flow of goods and services between the two countries. CUSFTA laid the groundwork for further trade agreements, including the North American Free Trade Agreement (NAFTA) in 1994, which expanded trade relations to include Mexico. The agreement has significantly increased trade volume and strengthened economic ties between the neighboring nations.