The North American Free Trade Agreement, or NAFTA, was a trade deal established in 1994 between Canada, Mexico, and the United States. Its main goal was to eliminate trade barriers, such as tariffs, to encourage free trade among the three countries. This agreement aimed to boost economic growth and create jobs by allowing goods and services to move more freely across borders.
In 2020, NAFTA was replaced by the United States-Mexico-Canada Agreement (USMCA), which updated many of the original provisions. The new agreement continued to promote trade while addressing modern issues like digital commerce and labor rights, ensuring that the benefits of trade are shared more equitably.