Commentary: The North American Free Trade Agreement (NAFTA) is a comprehensive trade agreement that improves virtually all aspects of doing business between Canada, Mexico, and the United States. Upon NAFTA’s entry into force on January 1, 1994, Mexico immediately eliminated tariffs on nearly 50% of all industrial goods imported from the United States and removed many non-tariff barriers. Virtually all tariffs on industrial goods were eliminated by 2003 and tariffs on U.S. exports of certain agricultural products to Mexico will be phased out on January 1, 2008. With the exception of tariff rate quotas on certain supply-managed agricultural products, all Canada-U.S. trade has been duty free since 1998. Canada and Mexico are the first and second largest export markets for U.S. goods.