Final answer:
NAFTA is a regional trade agreement between the United States, Canada, and Mexico that reduces tariffs and aims to boost investment. The U.S. also has additional trade agreements with other countries, including Chile. However, China and Brazil are not part of NAFTA, despite being significant U.S. trading partners.
Step-by-step explanation:
The North American Free Trade Agreement (NAFTA) has significantly influenced trading relationships between the United States and other countries. Established in 1994, NAFTA formed a trilateral trade bloc between the United States, Canada, and Mexico. The agreement aimed to eliminate or reduce tariffs, taxes, and quotas among the member countries, creating the world's largest trading bloc at the time, comparable to the European Union. The agreement sought to increase investment across borders and enhance the global competitiveness of its member nations.
Beyond NAFTA, the United States is also involved in other less-famous regional trade agreements such as the Caribbean Basin Initiative and a free trade agreement with Israel. These agreements commonly provide reduced tariffs for imports from participating countries. In addition, a free trade agreement with Chile was signed in 2003, allowing Chile to enjoy benefits similar to NAFTA member countries. Chile's relationship with NAFTA countries has deepened, particularly with the United States, becoming one of Chile's essential trading partners, with key exports including copper and agricultural products.
However, it is important to note that, despite the sentiments in the original statement, China and Brazil are not part of NAFTA, as it specifically includes the United States, Canada, and Mexico. China and Brazil may be significant trading partners of the United States, but this is not a direct result of NAFTA.