What treaty replaced NAFTA in 2020?

The treaty that replaced NAFTA in 2020 was the United States–Mexico–Canada Agreement (USMCA).

NAFTA governed trade among the United States, Mexico, and Canada from January 1, 1994, until USMCA entered into force on July 1, 2020. The newer agreement preserved much of NAFTA’s tariff-free framework but updated rules for automobiles, digital trade, labor, intellectual property, and dispute settlement.

The agreement is called USMCA in the United States, CUSMA in Canada, and T-MEC in Mexico. These names refer to the same pact, not separate treaties. A common mix-up is treating the agreement as a completely new free-trade system; it is better understood as a renegotiated and modernized successor to NAFTA.

USMCA also includes a review mechanism requiring the three countries to assess the agreement periodically, with the first formal joint review scheduled for 2026.