North American Free Trade Agreement (NAFTA) was a landmark free trade agreement signed in 1990 by the United States, Confederate States and Mexico, signalling a shift in previous tensions between the United States and Latin America. The negotiation process for NAFTA was controversial in all countries involved, particularly in the heavily unionized United States where there were fears of American companies moving to the low-wage and less regulated Confederacy. NAFTA was signed by US President Bob Dole, Confederate President Sam Nunn, and Mexican President Carlos Salinas on December 27, 1990. Prior to ratification, numerous amendments were passed by the United States Congress, where the Democrats greatly expanded their majority in that fall's midterm elections in both chambers, to protect American workers and allay environmental concerns.

Canada was added to NAFTA in 1995 with provisions added to protect traditional Canadian constituencies and Quebec was grandfathered in after its independence that same year. Quebec threatened to withdraw from NAFTA in 2000, but the threats went unrealized.

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