The significant international agreement that came into effect in 1994, creating a North American trade bloc, is the North American Free Trade Agreement (NAFTA). This pact was established between the United States, Canada, and Mexico, aiming to eliminate trade barriers, promote economic cooperation, and increase trade and investment across the three nations. NAFTA had a profound impact on North American economies, facilitating trade and economic integration, while also sparking debates on its effects on jobs, labor standards, and the environment. It was later replaced by the United States-Mexico-Canada Agreement (USMCA) in 2020.