North American Free Trade Agreement

an agreement, entered into force in 1994, that eliminated or reduced most tariffs between Canada, Mexico, and the United States. As a result, trade in goods and services increased substantially: Americans consume twice as much fruit and three times as many vegetables from Mexico and Canada as they did pre-NAFTA. While most economic analyses indicate that NAFTA was beneficial for the United States, it has not affected everyone equally and its consequences remain controversial.