North American Free Trade Agreement (NAFTA) (Customs Glossary)
Last updated 24 July 2026
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| This article is part of the Customs Glossary Guide |
| NAFTA is no longer the active North American free trade agreement. It was replaced in principle and in law by the Canada-United States-Mexico Agreement, called CUSMA in Canada, USMCA in the United States, and T-MEC in Mexico, effective July 1, 2020. |
The North American Free Trade Agreement (NAFTA) was a trade agreement between Canada, the United States, and Mexico. It came into force on January 1, 1994, and was replaced on July 1, 2020 by the Canada-United States-Mexico Agreement, known as CUSMA in Canada, USMCA in the United States, and T-MEC in Mexico.[1][2]
For current shipments, carriers, importers, and brokers should use CUSMA/USMCA/T-MEC procedures rather than NAFTA procedures when claiming preferential tariff treatment. The protocol replacing NAFTA states that, upon entry into force, CUSMA superseded NAFTA, subject to any CUSMA provisions that refer to NAFTA provisions.[1]
What NAFTA did
NAFTA created a regional trade framework for qualifying goods, services, and investment among Canada, the United States, and Mexico. Global Affairs Canada notes that Canada, the United States, and Mexico created one of the world’s largest free trade regions and that CUSMA continues to reinforce those North American economic ties.[3]
For goods, NAFTA’s most practical customs effect was the reduction or elimination of duties on goods that qualified under NAFTA rules of origin. NAFTA also helped establish many cross-border supply-chain practices that continued under CUSMA/USMCA, including origin documentation, preferential tariff treatment, and regional-content rules for some sectors.
Replacement by CUSMA
NAFTA no longer applies to new preference claims. For qualifying goods moving on or after July 1, 2020, the relevant agreement is:
- CUSMA in Canada;
- USMCA in the United States; and
- T-MEC in Mexico.
The Government of Canada states that CUSMA came into force on July 1, 2020, replacing NAFTA.[2] In principle, CUSMA preserves the North American free-trade framework while modernizing the agreement and changing several compliance details, including rules of origin for some goods and the origin-certification process.[3]
Certificate of origin changes
Under NAFTA, many preference claims used a prescribed NAFTA certificate of origin form. Under CUSMA/USMCA, there is no single required certificate form; instead, the certification of origin may be completed by the importer, exporter, or producer and must include the required minimum data elements.[4]
If a shipper provides an old NAFTA certificate for a current shipment, the importer or broker should confirm whether a valid CUSMA/USMCA certification of origin is required. A carrier should not assume that a NAFTA certificate is acceptable for a post-July 1, 2020 preference claim.
See also Certificate of Origin.
BorderConnect usage
In BorderConnect and other customs software, the term NAFTA may still appear in historical documents, archived shipments, old training material, customer paperwork, or legacy reference material. For current shipments, users should follow the broker's instructions and use the current CUSMA/USMCA/T-MEC documentation and tariff-treatment information supplied by the importer or broker.
Carriers should not decide origin eligibility on their own. Preferential treatment is normally handled by the importer and broker using the shipper's origin certification and supporting documentation.
Practical carrier note
A carrier may still see “NAFTA” printed on old commercial invoices, customer templates, or certificate files. For current shipments, treat that as a red flag and confirm with the importer or broker whether updated CUSMA/USMCA/T-MEC certification is required.
The name of the agreement can vary by country, but the agreement is the same North American replacement for NAFTA. In Canada it is called CUSMA, in the United States it is called USMCA, and in Mexico it is called T-MEC.