NAFTA took effect on 1 January 1994 and was replaced by USMCA on 1 July 2020, with higher car content rules and stronger labour enforcement. On 1 July 2026 the…
It phased out most tariffs among the three countries and built the supply chains behind cars, machinery and farm trade.
US goods exports to Canada and Mexico rose from $165bn to $677bn, and imports from $178bn to $897bn. Growth had many causes.
It supported export jobs and displaced workers in some industries. Automation, China and recessions also cut jobs, so no single number is NAFTA's alone.
Critics said it moved factories to Mexico. Supporters said it made supply chains efficient. Talks opened in August 2017.
The US-Mexico-Canada Agreement, called CUSMA in Canada and T-MEC in Mexico. It still needed ratification.
Car content rose from 62.5% to 75%, with a US$16-an-hour labour test, 70% North American steel and aluminium and stronger labour rules.
No. The US declined to renew it in its current form. It stays in force and is now reviewed every year until 2036.
Talks collapsed on 21 August. The US put 50% tariffs on about $20bn of Canadian goods, and Canada retaliated from 8 September.
Public comments close on 12 January 2027, ahead of the next annual review around 1 July 2027.
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