The North American Free Trade Agreement (NAFTA) was the free trade agreement among the United States, Mexico, and Canada that entered into force January 1, 1994. It eliminated most tariffs on goods originating in the three countries and was implemented in U.S. law by the NAFTA Implementation Act (Pub. L. 103-182).
NAFTA was superseded by the USMCA on July 1, 2020. As of that date, no new entries may claim NAFTA preference. NAFTA remains relevant for entries filed before July 1, 2020, including:
- Open protests and litigation over pre-2020 entries
- Verification audits and post-entry adjustments
- Reconciliation entries flagged before the transition
- Recordkeeping (five-year retention under 19 U.S.C. § 1508)
NAFTA used the CBP Form 434 Certificate of Origin and required 60% regional value content under the net cost method (50% under the transaction value method) for most goods, with 62.5% RVC for passenger vehicles. The agreement allowed a 7% de minimis tolerance.
Importers transitioning from NAFTA to USMCA should note that some product-specific rules tightened — particularly for autos, textiles, and chemicals — so a good that qualified under NAFTA may not qualify under USMCA without re-sourcing or process changes.