The history of U.S.–Canada trade is long.
It began with the 1854 Reciprocity Treaty.
Then came the 1965 Auto Pact, which removed tariffs on many cars and parts and helped create today’s integrated North American auto industry.
Then came the 1989 Canada–U.S. Free Trade Agreement, which phased out most tariffs and expanded rules on investment, energy, and disputes.
In 1994, it became NAFTA with Mexico, tying North American supply chains even closer together.
NAFTA was replaced in 2020 by USMCA/CUSMA, which kept most free trade but tightened auto rules, added stronger labor standards, updated digital trade rules, and expanded U.S. access to Canada’s dairy market.
The two countries still fight over lumber, dairy, steel, aluminum, agriculture, and energy.
Despite disputes, we’ve had steadily deeper trade integration.