Final answer:
The North American Free Trade Agreement (NAFTA) removed economic barriers between the US, Canada, and Mexico, leading to increased trade and investment opportunities within North America.
Step-by-step explanation:
The North American Free Trade Agreement (NAFTA) is the agreement that promised prosperity by removing economic barriers among the United States, Canada, and Mexico. This groundbreaking trade agreement was signed in December 1992 and went into effect in 1994. Its aim was to eliminate trade barriers like tariffs and to allow goods to flow more freely across borders of the three countries.
NAFTA was a significant economic event for North America, providing secure market access and removing numerous tariffs and restrictions in various sectors such as agriculture, energy, and automotive trade. It not only facilitated the creation of the world's largest trading bloc but also stimulated foreign investments and industrial shifts, especially in Mexico with the rise of Maquiladoras. The agreement was seen as essential in competing with the European Union in the global market.
The ratification of NAFTA had considerable opposition, particularly from American labour unions who feared job losses, but it ultimately received support after the addition of side agreements intended to protect workers and the environment. By opening up markets and setting rules for dispute settlements, NAFTA reshaped trade dynamics in North America.