The North American Free Trade Agreement (NAFTA) was a trade agreement signed in 1992 by Canada, Mexico, and the United States, which came into effect on January 1, 1994. It created a trilateral free trade bloc in North America by gradually eliminating most tariffs and trade barriers on goods and services traded among the three countries. NAFTA aimed to promote economic integration, reduce trading costs, expand trade and investment opportunities, and improve working conditions and environmental standards across the member countries. It was one of the largest trade blocs globally by GDP and population
. NAFTA covered trade in goods, services, investment, intellectual property rights, and dispute settlement procedures. It phased out tariffs on many products, especially in agriculture, textiles, and automobiles, by 2008. The agreement also included side accords on labor and environmental protections to prevent exploitation through lower wages or lax regulations
. NAFTA was replaced by the United States-Mexico-Canada Agreement (USMCA) on July 1, 2020, which updated and revised many provisions of the original pact
. In summary, NAFTA was a landmark trade deal that created a large free trade area among the U.S., Canada, and Mexico to encourage economic cooperation and growth by reducing trade barriers and fostering closer economic ties among the three countries
