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The North American Free Trade Agreement (NAFTA), signed by Prime Minister Brian Mulroney, Mexican President Carlos Salinas and U.S. President George H.W. Bush, came into force on January 1, 1994. NAFTA has created economic growth and a rising standard of living for the people of the three member countries. By strengthening trade and investment rules and procedures across the continent, Nafta has proven to be a solid foundation for building Canada`s prosperity. NAFTA replaced Canada-U.S. Free Trade Agreement (CUFTA). Negotiations on CUFTA began in 1986 and the agreement entered into force on 1 January 1989. The two nations agreed on a landmark agreement that put Canada and the United States at the forefront of trade liberalization. For more information, visit the Canada-U.S. Free Trade Agreement information page. The North American Labour Cooperation Agreement (NAALC) came into force in January 1994.

It is one of two parallel agreements to the North American Free Trade Agreement between the United States, Canada and Mexico. The agreement is managed by the Commission for Professional Cooperation, composed of a Council of Ministers and a trinational secretariat, based in Washington D.C. Currently, four provinces (Quebec, Alberta, Manitoba and Prince Edward Island) are signatories to NAALC through an intergovernmental agreement. In Canada, the Office for Inter-American Labour Cooperation acts as a Canadian NAO within the Labour Branch of Human Resources and Skills Development Canada. The Canadian NAO also provides for the filing and receipt of public communications (complaints) on labour law issues that arise in the territory of another contracting party and serves as the official auditing body in Canada. Although NAFTA has not kept all its promises, it has remained in place. Indeed, in 2004, the Central American Free Trade Agreement (CAFTA) extended NAFTA to five Central American countries (El Salvador, Guatemala, Honduras, Costa Rica and Nicaragua). In the same year, the Dominican Republic joined the group in signing a free trade agreement with the United States, followed by Colombia in 2006, Peru in 2007 and Panama in 2011. The Trans-Pacific Partnership (TPP), signed on October 5, 2015, represented an extension of NAFTA to a much larger extent.

On December 19, 2019, the U.S. House of Representatives passed the USMCA with multiparty support with 385 votes (Democracy 193, Republican 192) to 41 (Democracy 38, Republican 2, Independent 1). [79] On January 16, 2020, the U.S. Senate passed the trade agreement by 89 votes (Democrats 38, Republicans 51) to 10 (Democracy 8, Republican 1, Independent 1)[80] and the bill was forwarded to the White House for the signature of Donald Trump. [81] On January 29, 2020, Trump signed the agreement (Public Law No: 116-113). [82] NAFTA has been formally amended,[83] but not the 1989 Canada-U.S. Free Trade Agreement, which is only “suspended.” [84] [85] The U.S.-Mexico-Canada agreement, also known as USMCA, is a trade agreement between the three nations, signed on November 30, 2018. The USMCA replaced the North American Free Trade Agreement (NAFTA), which has been in force since January 1994. In accordance with NAFTA, tariffs on many goods that escape between the three major economic powers of North America have been phased out.