North American Free Trade Agreement (NAFTA)

On January 1, 1994, the North American Free Trade Agreement between the United States, Canada, and Mexico (NAFTA) entered into force.

All remaining duties and quantitative restrictions were eliminated, as scheduled, on January 1, 2008.

NAFTA created the world's largest free trade area, which now links 444 million people producing $17 trillion worth of goods and services.

Trade between the United States and its NAFTA partners has soared since the agreement entered into force.

U.S. goods and services trade with NAFTA totaled $1.1 trillion in 2008 (latest data available for Goods and Services trade). Exports totaled $482 billion; Imports totaled $596 billion. The U.S. goods and services trade deficit with NAFTA was $114 billion in 2008. 

The United States has $735 billion in total (two ways) goods trade with NAFTA countries (Canada and Mexico) during 2009. Goods exports totaled $334 billion; Goods imports totaled $401 billion. The U.S. goods trade deficit with NAFTA was $68 billion in 2009. 

Trade in services with NAFTA (exports and imports) totaled $110 billion in 2008 (latest data available). Services exports were $69.8 billion; Services imports were $40.2 billion. The U.S. services trade surplus with NAFTA was $29.6 billion in 2008. 

Exports 

The NAFTA countries (Canada and Mexico), were the top two purchasers of U.S. exports in 2009. (Canada $204.7 billion and Mexico $129.0 billion). 

U.S. goods exports to NAFTA in 2009 were $333.7 billion, down 19.1% ($79 billion) from 2008, but 102% from 1994 (the year prior to Uruguay Round) and up 135% from 1993 (the year prior to NAFTA). U.S. exports to NAFTA accounted for 31.6% of overall U.S. exports in 2009, down slightly from 32.2% in 1994. 

The top export categories (2-digit HS) in 2009 were: Machinery ($52.0 billion), Electrical Machinery ($44.2 billion), Vehicles (parts) ($41.4 billion), Plastic ($18.5 billion), and Mineral Fuel and Oil ($17.4 billion). 

U.S. exports of agricultural products to NAFTA countries totaled $28.6 billion in 2009. Leading categories include: red meats, fresh/chilled/frozen ($2.5 billion), coarse grains ($2.1 million), fresh fruit ($1.7 billion), snack foods (excluding nuts) ($1.7 billion), and fresh vegetables ($1.7 billion). 

U.S. exports of private commercial services* (i.e., excluding military and government) to NAFTA were $69.8 billion in 2008 (latest data available), up 5.6% ($3.7 billion) from 2007, and up 146% since 1994. 

Imports 

The NAFTA countries were the second and third largest suppliers of goods imports to the United States in 2009. (Canada $224.9 billon, and Mexico $176.5 billion). 

U.S. goods imports from NAFTA totaled $401.4 billion in 2009, down 27.7% ($154 billion), from 2008, but 126% from 1994, and up 166% from 1993. U.S. imports from NAFTA accounted for 25.8% of overall U.S. imports in 2009, down from 26.9% in 1994. 

The five largest categories in 2009 were Mineral Fuel and Oil (crude oil) ($89.0 billion), Vehicles ($58.5 billion), Electrical Machinery ($54.1 billion), Machinery ($37.8 billion), and Special Other (returns) ($12.2 billion). 

U.S. imports of agricultural products from NAFTA countries totaled $26.1 billion in 2009. Leading categories include: fresh vegetable ($3.7 billion), snack foods, (including chocolate) ($3.4 billion), fresh fruit (excluding bananas) ($2.1 billion), processed fruit and vegetables ($1.9 billion), and wine and beer ($1.7 billion). 

U.S. imports of private commercial services* (i.e., excluding military and government) were $40.2 billion in 2008 (latest data available), up 0.5% ($207 million) from 2007, and up 127% since 1994. 

Trade Balances 

The U.S. goods trade deficit with NAFTA was $67.7 billion in 2009, a 52.7% decrease (75 billion) over 2008. The U.S. goods trade deficit with NAFTA accounted for 13.5% of the overall U.S. goods trade deficit in 2009, up from 8.7% in 1994. 

The United States had a services trade surplus of $29.6 billion with NAFTA countries in 2008 (latest data available). 

Investment 

U.S. foreign direct investment (FDI) in NAFTA Countries (stock) was $322.9 billion in 2008 (latest data available), down 0.7% from 2007. 

U.S. direct investment in NAFTA Countries is in the finance/insurance, nonbank holding companies, manufacturing and mining sectors. 

NAFTA Countries FDI in the United States (stock) was $229.8 billion in 2008, up 7.3% from 2007 (latest data available). 

NAFTA countries direct investment in the U.S. is in the finance/insurance, manufacturing, and banking sectors. 

NAFTA related information is available on the right.