Question

The North American Free Trade Agreement (NAFTA) created a free-trade area for

A. South America, Canada, and Mexico
B. Mexico, the US, and Canada
C. Europe, the US, and Mexico
D. Central America, Canada, and Mexico

Answer 1

NAFTA, an agreement between Canada, the United States, and Mexico, was implemented to eliminate trade barriers and foster free trade, coming into effect in 1994. Option B is correct.

Step-by-step explanation:

The North American Free Trade Agreement (NAFTA) was established to reduce trade barriers and allow goods to flow freely between Canada, the United States, and Mexico. This agreement was signed by the leaders of these countries in 1992 and came into effect in 1994, with the goal of becoming the world's largest trading bloc to increase economic opportunities and compete globally, especially against the European Union. The idea originated during Ronald Reagan's 1980 election campaign, and it gained traction after the completion of the Canada-US Free Trade Agreement, prompting Mexico to pursue a similar arrangement.