The agreement entered into force on 1 January 1994 and replaced the 1988 Free Trade Agreement between the United States and Canada between the United States and Canada. The NAFTA trading bloc is one of the largest trading blocs in the world in terms of gross domestic product. Bilateral trade agreements also expand the market for a country`s products. In the early 2000s, the United States vigorously concluded free trade agreements with a number of countries under the Bush administration to encourage market-oriented domestic policy that treats private investment in an open, transparent and non-discriminatory manner; and bilateral agreements can often trigger competing bilateral agreements between other countries. .