NAFTA & the Widening U.S. Trade Deficit

The North American Free Trade Agreement took effect on 1 January 1994, deepening trade integration across the United States, Canada, and Mexico. It coincided with — and contributed to — a sustained widening of the U.S. goods-and-services deficit through the 1990s and 2000s.^[1]

1. U.S. Bureau of Economic Analysis (2025). International Transactions Accounts (BPM6). BEA. link.