The establishment of NAFTA in 1994 represented a pivotal shift for the American economy. It aimed to eliminate trade barriers between the United States, Canada, and Mexico. The agreement was intended to foster economic growth by increasing trade and investment across North America. By reducing tariffs and promoting free trade, NAFTA encouraged businesses to expand operations and optimize supply chains. While it contributed to growth in certain sectors, it also sparked debate about job displacement and wage stagnation in manufacturing industries, leading to ongoing discussions about trade policy.