Final answer:
NAFTA reduced or eliminated tariffs particularly in agriculture, textiles, and automotive industry sectors, facilitating the creation of the world’s largest trading bloc. The value of trade between Canada, the United States, and Mexico was substantial and grew significantly after NAFTA, with U.S.-Mexico trade exceeding $480 billion by 2015.
Step-by-step explanation:
The North American Free Trade Agreement (NAFTA) focused on reducing or eliminating tariffs in various areas to encourage free trade between Canada, the United States, and Mexico. Three prominent sectors that saw tariff reductions were agriculture, textiles, and the automotive industry. In agriculture, NAFTA worked to open previously protected sectors, making it easier for countries to export agricultural goods. The agreement also targeted the textile industry, easing restrictions and fostering competitive markets. Finally, it addressed the automotive trade by eliminating tariffs, streamlining the process of importing and exporting vehicles and parts between the member countries.
Concerning the value of trade amongst these countries, in 1993, before NAFTA was implemented, trade across the U.S.-Mexico border reached a total of over $480 billion by 2015, marking a significant increase over the pre-NAFTA figures. For Canada, NAFTA secured more stable access to U.S. and Mexican markets, which were highly beneficial for its economy.