The U.S.-Mexico-Canada Agreement (USMCA) succeeded which previous trade agreement?

The U.S.-Mexico-Canada Agreement (USMCA) succeeded the North American Free Trade Agreement (NAFTA). NAFTA was established in 1994 to create a trilateral trade bloc between the United States, Canada, and Mexico, aimed at eliminating trade barriers and promoting economic cooperation among the three countries.

With the evolution of trade dynamics and changing economic circumstances, the USMCA was negotiated and implemented in 2020 to update and replace NAFTA. It introduced new provisions regarding labor rights, environmental standards, and digital trade, reflecting contemporary trade issues that were not fully addressed in the original NAFTA. This agreement addresses modern trade challenges and seeks to strengthen economic ties between the three nations while providing updated protections for workers and businesses.

In contrast, the other choices represent different trade agreements or institutions that do not directly relate to the replacement of NAFTA. CAFTA is the Central America Free Trade Agreement, TPP refers to the Trans-Pacific Partnership, and the WTO Agreements pertain to the World Trade Organization, which governs international trade rules. None of these directly succeeded NAFTA.