Regional Trade Blocs Around the World

The North American Free Trade Agreement (NAFTA), among the United States, Canada, and Mexico, entered into force on January 1, 1994, eliminating most tariffs among the three countries and becoming one of the largest free trade areas in the world at the time. Following renegotiation demanded by the Trump administration, the three countries replaced it with the United States-Mexico-Canada Agreement (USMCA), signed in November 2018 and entering into force on July 1, 2020, which tightened rules of origin for automobiles, required a share of vehicle content to be made by workers earning at least sixteen dollars an hour, and added updated provisions on digital trade and labor rights enforcement.