Which statement best describes NAFTA?

Which statement best describes NAFTA?

• A. Germany, France, and Italy form the alliance
• B. Canada, The United States, and Mexico form the alliance
• C. Mexico, Brazil, and Argentina form the alliance
• D. Canada and Mexico only form the alliance

Answer: (B)

NAFTA is a trade agreement among North American countries designed to reduce tariffs and encourage cross-border commerce and investment. The statement that Canada, the United States, and Mexico form the alliance is the best description because those three nations are the members of NAFTA. It does not involve European countries or South American nations, and NAFTA is not limited to only two countries. For context, NAFTA started in 1994 to promote freer trade in North America and was later updated and replaced by the USMCA in 2020, which continues the goal of integrated trade in the region.

NAFTA is a trade agreement among North American countries designed to reduce tariffs and encourage cross-border commerce and investment. The statement that Canada, the United States, and Mexico form the alliance is the best description because those three nations are the members of NAFTA. It does not involve European countries or South American nations, and NAFTA is not limited to only two countries. For context, NAFTA started in 1994 to promote freer trade in North America and was later updated and replaced by the USMCA in 2020, which continues the goal of integrated trade in the region.