The Confederate States of North America was formed from the Vice Royalty of New Byzantium which was made redundant by the overthrow of the Byzantine Empire in 1851. Inspired by the spirit of the revolution that had shook Europe, the people of New Byzantium overthrew the Viceroy and established a state system similar to that used by the United States of America to the north-east.
To begin with, without support from the main Byzantine Empire, the Confederate States of North America struggled to strengthen its economy. Close trading links were established with the fellow Byzantine breakaway state, the Kingdom of Grand Inca. This proved mutually beneficial in setting up the two new states' economies. Much influence was exerted over the rest of the Caribbean, although this proved to be not as profitable.
The American Civil War
In 1861, troops from the similarly named Confederate States of America attacked Union troops at Fort Sumter. The result was the American Civil War. In 1863, the CSNA decided to support the CSA in an attempt to extend their influence eastwards. The fighting was hard, but in 1866 an armistice was reached between the CSNA and the USA, ending in a US victory with a chunk of their northern territories annexed by the USA.
The Loss of the Southern Territories
The Confederacy's participation in the American Civil War was costly, in terms of money and human life. In 1870, the region of New Byzantium called Mexico, after the Mexica tribe of Aztecs, launched an independence movement. The fight lasted two years but the Confederate authorities didn't have the troop numbers to suppress the revolt. In 1872, the Republic of Mexico was declared.