NAFTA (North American Free Trade Agreement)

Current Context: India’s Ministry of Commerce and Industry has expanded its NAFTA division to facilitate trade negotiations with the United States, aiming to avoid the imposition of 26% reciprocal tariffs and strengthen bilateral trade ties.

About

• NAFTA was a trilateral trade agreement among the United States, Canada, and Mexico, effective from 1994 to 2020.
• It eliminated tariffs, promoted investment, and created one of the largest free trade zones globally.
• In 2020, NAFTA was replaced by the United States-Mexico-Canada Agreement (USMCA) with updated provisions on:Digital trade,Labour and environmental standards & Intellectual property rights