North American Free Trade Agreement (NAFTA)
North American Free Trade Agreement (NAFTA) was the trade agreement among the United States, Canada and Mexico in force from January 1, 1994 to June 30, 2020, when USMCA replaced it.
What it requires
NAFTA phased out tariffs on most originating goods traded among the three countries by 2008, using rules of origin such as 62.5 percent regional value content for autos. Importers claimed preference with a NAFTA Certificate of Origin. It is no longer in force: goods entered before July 1, 2020 followed NAFTA rules, while current trade uses USMCA rules of origin and certification of origin requirements.
Why it matters
NAFTA matters today mainly as the foundation of the North American supply chains that USMCA inherited. It drove growth in Mexican export manufacturing and in cross-border trucking corridors such as Laredo, which now carry inventory to US distribution centers. Operators still meet the term in old contracts, ERP origin fields and supplier files; a supplier sending a NAFTA certificate today is using an obsolete form and should provide a USMCA certification of origin instead.
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Not legal advice.