On July 1st, 2020, CUSMA came into effect. It maintains key elements from its predecessor, NAFTA, while introducing new measures to support trade and prosperity in a modern economy.
In 1994, the United States, Mexico, and Canada formed the largest free-trade region in the world with the North American Free Trade Agreement (NAFTA). This agreement provided the foundation for Canada’s economic growth in the 21st century and fostered a mutually beneficial trade environment for the North American countries involved. CUSMA hopes to build on the progress made by NAFTA and set an example for the rest of the world about the benefits of trade liberalization.
NAFTA has delivered significant value to Mexico, Canada, and the United States. In 2017, the total amount of each country’s imports from one another reached over one trillion USD. Since 1993, total merchandise trade between Canada and the US has more than doubled and has increased over nine-fold between Canada and Mexico.