What does NAFTA stand for?

What does NAFTA stand for?

• A. North American Free Trade Agreement
• B. North American Foreign Trade Agreement
• C. North American Free Trade Association
• D. North American Free Trade Act

Answer: (A)

NAFTA stands for North American Free Trade Agreement. The words match the idea of a formal treaty among Canada, the United States, and Mexico to promote trade by reducing tariffs and other barriers. The term “North American” identifies the region, “Free Trade” highlights the goal of fewer trade restrictions, and “Agreement” shows it’s a binding pact. The other phrasings change the meaning: “Foreign Trade” would imply trade with outside North America, “Trade Association” would be a group rather than a treaty, and “Trade Act” would be a domestic law rather than an international agreement.

NAFTA stands for North American Free Trade Agreement. The words match the idea of a formal treaty among Canada, the United States, and Mexico to promote trade by reducing tariffs and other barriers. The term “North American” identifies the region, “Free Trade” highlights the goal of fewer trade restrictions, and “Agreement” shows it’s a binding pact. The other phrasings change the meaning: “Foreign Trade” would imply trade with outside North America, “Trade Association” would be a group rather than a treaty, and “Trade Act” would be a domestic law rather than an international agreement.