The North American Free Trade Agreement entered into force on January 1, 1994, phasing out most tariffs and many non-tariff barriers among the United States, Canada, and Mexico. The agreement encouraged manufacturers, particularly in the automotive and electronics sectors, to build integrated cross-border production networks, with components crossing the shared borders multiple times before final assembly. Cross-border trucking volume and customs processing at land border crossings grew substantially in the years following implementation. NAFTA remained the governing framework for North American trade until it was replaced by the United States-Mexico-Canada Agreement in 2020.
Relevance to Trade History
NAFTA was among the most consequential regional trade agreements of the late twentieth century, deeply integrating North American manufacturing and logistics networks.
Read the full story in our article Container Shipping and the Modern Supply Chain.
Source: Office of the United States Trade Representative historical archive. See our Sources & Methodology page for how we select and verify references.