The North American Free Trade Agreement (NAFTA) is a trade agreement between Canada, Mexico, and the United States. The goal of NAFTA was to eliminate trade barriers among the three countries and to facilitate the movement of goods and services across their borders.

NAFTA was signed in 1992 and went into effect on January 1, 1994. The agreement creates a free trade zone among the three countries, which means that goods and services can move across their borders without the imposition of tariffs or other trade barriers.

One of the main benefits of NAFTA is that it has helped to increase trade among the three countries. The agreement has made it easier for businesses to sell their products and services across borders, which has led to increased economic growth and job creation.

NAFTA has also helped to improve the competitiveness of the North American region in the global marketplace. By allowing businesses to operate more efficiently across borders, the agreement has created new opportunities for innovation and growth.

Despite its many benefits, NAFTA has also been the subject of controversy. Critics argue that the agreement has led to the loss of jobs in certain industries, particularly in the manufacturing sector. Some also argue that NAFTA has had negative impacts on the environment and on labor standards in the three countries.

In recent years, there has been a push to renegotiate NAFTA. In 2018, the United States, Mexico, and Canada signed a new trade agreement called the United States-Mexico-Canada Agreement (USMCA). The USMCA includes many of the same provisions as NAFTA, but also includes new provisions related to labor standards, environmental protection, and digital trade.

Overall, despite its controversy, NAFTA has played an important role in promoting trade and economic growth between the three countries. The new USMCA agreement is expected to build on NAFTA`s successes and address some of its shortcomings.