The trade agreement that replaced NAFTA in 2020 is the United States–Mexico–Canada Agreement, or USMCA.
USMCA took effect on July 1, 2020, replacing the North American Free Trade Agreement, which had governed trade among the United States, Mexico, and Canada since January 1, 1994. Negotiations began in 2017 after the United States sought to revise NAFTA, and the three countries signed the final agreement in 2018.
The agreement preserved much of NAFTA’s tariff-free framework but updated rules for digital trade, intellectual property, labor, automobiles, and environmental protections. For example, it raised regional-content requirements for automobiles from 62.5% under NAFTA to 75% under USMCA.
A common source of confusion is its name. Canada officially calls it CUSMA in English, while Mexico uses T-MEC in Spanish. USMCA is the standard U.S. name and the widely recognized English answer. It is also sometimes informally called “NAFTA 2.0” or “New NAFTA.”