NAFTA, which is an acronym for the North America Free Trade Agreement, is a trade agreement between the United States, Mexico and Canada. The agreement first went into effect on Jan. 1, 1994, and is supplemented by two additional agreements.
As of 2015, the NAFTA countries have a combined economic output of over $20 trillion compared to $8 trillion in 1993. Under NAFTA, certain trade tariffs for covered goods were removed in 2008 between Mexico and Canada. When it came into effect, the NAFTA also replaced the prior Canada-United States Free Trade Agreement. The North American Agreement on Environmental Cooperation and the North American Agreement on Labor Cooperation supplement NAFTA.