NAFTA takes effect

The North American Free Trade Agreement entered into force on January 1, 1994, phasing out most tariffs between the US, Canada, and Mexico over the following 15 years. Mexican manufacturing exports to the US, especially from border maquiladora plants, grew rapidly, and North American supply chains for autos, electronics, and agriculture became deeply integrated. Critics pointed to job losses in specific US manufacturing sectors and continued to debate NAFTA's effect on Mexican wages and small farmers; supporters credited it with boosting regional trade several-fold. NAFTA was eventually renegotiated and replaced by the US-Mexico-Canada Agreement (USMCA) in 2020.