North American Free Trade Agreement (NAFTA)

Also see 'USMCA (US Mexico Canada Agreement)

The North American Free Trade Agreement (NAFTA) was a trade agreement between the United States, Canada, and Mexico. It was signed into law on January 1, 1994, and it removed most tariffs and other trade barriers between the three countries. It has since been replaced by a new agreement, called the United States-Mexico-Canada Agreement (USMCA). That was signed into law on July 1, 2020.

The USMCA is similar to NAFTA, but it includes some changes, such as stricter rules on automobile manufacturing and stronger labor and environmental protections.

Some of NAFTA's original goals included:

• Eliminating barriers to trade: To make it easier for businesses to trade goods and services across borders.
• Promoting investment: Which creates jobs and boosts economic growth.
• Protection of intellectual property rights: To protect businesses' investments in research and development.
• Creating a level playing field: To reduce unfair competition and promote fair trade.

For importers planning on taking advantage of the preferential tariffs and even duty-free status of some products, it's best to work with a customs broker. A broker experienced in cross-border trade with either Canada or Mexico, is familiar with the small details involved as well as any disputes that may come up and interrupt normal trade practices for a time.

Related articles: 

NAFTA vs.USMCA: A Complete Comparison | USA Customs Clearance 

U.S. Free Trade Agreements: Find Savings Close to Home