Trade agreements (such as NAFTA, USMCA)

Trade agreements like NAFTA (North American Free Trade Agreement) and USMCA (United States-Mexico-Canada Agreement) are treaties between countries that facilitate trade by reducing or eliminating tariffs (taxes on imports) and other trade barriers. These agreements aim to promote economic cooperation, increase market access, and support job creation by making it easier and cheaper for countries to trade goods and services with each other. For example, USMCA, which replaced NAFTA, modernizes trade rules to reflect changes in the economy, such as digital trade and labor provisions, benefiting various industries in the participating nations.