The North American Free Trade Agreement has reduced and eliminated barriers to trade between the United States and its two most important commercial partners, Canada and Mexico. The agreement was signed by the three countries in 1992, passed by the U.S. Congress in 1993, and enacted on January 1, 1994. It has proven to be one of the most important and controversial trade agreements in U.S. history.

NAFTA delivered on its central promise of more trade and deeper economic integration among the three major North American economies. It has also strengthened democracy and economic reform in Mexico. Despite its positive record, NAFTA remains a lightening rod for opponents of trade liberalization. Complaints that NAFTA has caused America to suffer large job losses, a drop in manufacturing output and a "giant sucking sound" of investment flowing across the border have proven to be false.