Which agreement is known for promoting free trade among three North American countries?

Which agreement is known for promoting free trade among three North American countries?

• A. NAFTA (North American Free Trade Agreement)
• B. Mercosur
• C. NGOs
• D. microcredit program

Answer: (A)

Trilateral free trade agreements reduce barriers and promote cross-border commerce among the participating nations. NAFTA did exactly that for Canada, the United States, and Mexico, gradually eliminating most tariffs on goods traded among them and establishing common rules of origin, investment protections, and dispute-resolution mechanisms. This created a stable framework that encouraged manufacturing, sourcing, and investment across borders, helping businesses plan and compete more effectively in the region. While NAFTA has been updated and renamed in recent years, it remains the classic example of a pact designed to promote free trade among three North American countries. The other options don’t fit: Mercosur is a South American trade bloc, NGOs are organizations rather than trade agreements, and microcredit programs are financial services for small loans rather than international trade agreements.

Trilateral free trade agreements reduce barriers and promote cross-border commerce among the participating nations. NAFTA did exactly that for Canada, the United States, and Mexico, gradually eliminating most tariffs on goods traded among them and establishing common rules of origin, investment protections, and dispute-resolution mechanisms. This created a stable framework that encouraged manufacturing, sourcing, and investment across borders, helping businesses plan and compete more effectively in the region. While NAFTA has been updated and renamed in recent years, it remains the classic example of a pact designed to promote free trade among three North American countries. The other options don’t fit: Mercosur is a South American trade bloc, NGOs are organizations rather than trade agreements, and microcredit programs are financial services for small loans rather than international trade agreements.