NAFTA and North American Trade · US History

The North American Free Trade Agreement (NAFTA), which took effect in 1994, was primarily designed to:

  1. Establish a single common currency for use across the entire North American continent
  2. Eliminate most tariffs and trade barriers between the U.S., Canada, and Mexico
  3. Create a formal military defense alliance similar to NATO for the Americas
  4. Prohibit the free migration of labor and workers across all national borders
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Correct answer: Eliminate most tariffs and trade barriers between the U.S., Canada, and Mexico

NAFTA aimed to create one of the world's largest free-trade zones. By removing tariffs, the three member nations sought to increase economic integration and boost the competitiveness of North American products.

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