Free Trade Agreement (Canada-United States Free Trade Agreement)

The Canada-United States Free Trade Agreement (CUSFTA), signed in 1988, was a pact that reduced tariffs and trade barriers between the two countries. It aimed to encourage economic growth by making it easier and cheaper for Canada and the U.S. to buy and sell goods and services across their borders. The agreement helped businesses operate more freely, increased exports and imports, and promoted competitiveness. In 1994, CUSFTA was replaced by the North American Free Trade Agreement (NAFTA), which included Mexico. Overall, CUSFTA was an important step toward economic integration between Canada and the U.S. through mutually beneficial trade.