No. The North American Free Trade Agreement is no longer in effect. NAFTA ended on July 1, 2020, and was replaced the same day by the United States-Mexico-Canada Agreement (USMCA), which now governs trade among the United States, Canada, and Mexico.1Office of the Law Revision Counsel. 19 USC Ch. 29 United States-Mexico-Canada Agreement Implementation The USMCA kept the basic idea of reduced tariffs on qualifying North American goods but changed the rules in several important areas and added a built-in expiration date.
How NAFTA Was Formally Ended
NAFTA took effect on January 1, 1994, and governed trade among the three countries for more than 25 years.2U.S. Customs and Border Protection. North American Free Trade Agreement Its domestic legal foundation in the United States was the North American Free Trade Agreement Implementation Act, codified as Chapter 21 of Title 19 of the U.S. Code.
That chapter was repealed by Public Law 116-113, the same statute that implemented the USMCA, effective July 1, 2020.1Office of the Law Revision Counsel. 19 USC Ch. 29 United States-Mexico-Canada Agreement Implementation On that date, U.S. Customs and Border Protection stopped processing entries under NAFTA preference codes. The certificates of origin, tariff preferences, and customs procedures tied to the 1994 agreement no longer apply to new shipments. Canada and Mexico coordinated their own effective dates so there was no gap in trade relations among the three countries.
What the USMCA Changed
The USMCA preserved tariff-free treatment for goods that qualify as North American in origin, but it tightened or added rules in areas NAFTA either handled loosely or did not address at all.
Automotive Rules of Origin
The biggest changes hit the auto sector. Under NAFTA, a vehicle needed 62.5 percent regional value content to qualify for preferential tariff treatment. The USMCA raised that to 75 percent. It also introduced a labor value content requirement: 40 to 45 percent of a vehicle’s value must come from manufacturing facilities where workers earn at least $16 per hour.3U.S. Customs and Border Protection. USMCA FAQs NAFTA had no equivalent wage floor.
Digital Trade
NAFTA predated the commercial internet and had no digital trade provisions. The USMCA dedicates a full chapter to it, prohibiting customs duties on electronically transmitted products such as software, music, and e-books, and barring governments from requiring companies to hand over proprietary source code or algorithms as a condition of market access.4United States Trade Representative. USMCA Text – Chapter 19 Digital Trade
Labor Enforcement
The USMCA created a rapid-response labor mechanism that lets the United States target specific factories in Mexico when there is credible evidence that workers are being denied the right to organize or bargain collectively.5United States Trade Representative. FACT SHEET The USMCA Rapid Response Mechanism Delivers for Workers Any interested party can petition the U.S. government to open a case. If a facility is found in violation and does not fix the problem, penalties can include suspension of tariff preferences for that facility’s goods or a ban on its exports to the United States.6United States Trade Representative. Chapter 31 Annex A Facility-Specific Rapid-Response Labor Mechanism Since 2021, the tool has been used at more than two dozen facilities in industries including automotive, garments, mining, and food manufacturing.
Environmental Obligations
The USMCA includes enforceable environmental provisions backed by U.S. implementing legislation, directing federal agencies to monitor and enforce laws on wildlife trafficking, marine mammal protection, and other areas.7Office of the Law Revision Counsel. 19 USC Chapter 29 Subchapter VII Environment Monitoring and Enforcement NAFTA’s environmental commitments sat mostly in a side agreement and lacked the same direct enforceability.
Agricultural Market Access
The USMCA opened new tariff-rate quotas for U.S. dairy, poultry, and egg exports to Canada, products heavily restricted under NAFTA. For dairy, the agreement created quotas for fluid milk (50,000 metric tons by year six), cheese (12,500 metric tons), cream (10,500 metric tons), and other categories, each growing one percent annually after reaching its initial cap.8United States Trade Representative. Agriculture Market Access and Dairy Outcomes of the USMCA Agreement Canada also agreed to eliminate certain milk pricing classes that the United States said were undercutting American exports.
Who Can Certify Origin
Under NAFTA, only the exporter or producer could complete a certificate of origin. Under the USMCA, the importer, exporter, or producer can do so.9eCFR. Part 182 United States-Mexico-Canada Agreement The certification no longer follows a prescribed form, but it must contain nine specific data elements, including the certifier’s role, product description and Harmonized System code, and the origin criterion the goods satisfy.10United States Trade Representative. USMCA Text – Annex 5-A Minimum Data Elements Importers claiming USMCA treatment must keep supporting records for at least five years from the date of importation.11Regulations.gov. USMCA Implementing Regulations Related to Textile and Apparel Goods, Automotive Goods, and Other USMCA Provisions
How Long the USMCA Itself Will Last
NAFTA had no expiration mechanism. The USMCA does. It will automatically terminate 16 years after entry into force, in 2036, unless all three countries agree to extend it.12Embassy of Mexico in the United States. USMCA Sunset Clause Review and Term Extension
The first joint review is scheduled to begin on July 1, 2026, the agreement’s sixth anniversary. During that review, each country’s head of government must confirm in writing whether they want to extend the USMCA for another 16 years.13United States Trade Representative. USMCA Text – Chapter 34 Final Provisions If all three agree, the clock resets and the agreement runs through 2042.
If any country declines to extend, the agreement does not immediately end. The three nations instead shift to annual reviews for the rest of the 16-year term, working to resolve whatever prevented extension. If year 16 arrives without a confirmed extension, the agreement expires.12Embassy of Mexico in the United States. USMCA Sunset Clause Review and Term Extension
The 2026 review is expected to cover more than a simple extension vote. Likely pressure points include stricter automotive content rules, labor enforcement in Mexico, energy market access, digital trade policy, agricultural disputes over biotech products and Canada’s dairy supply management, and how the three countries handle supply chains involving non-member countries.