Which economic alliance reduces trade barriers between Mexico, Canada, and the United States?

Which economic alliance reduces trade barriers between Mexico, Canada, and the United States?

• A. EU
• B. NATO
• C. NAFTA
• D. OAS

Answer: (C)

Trade agreements that lower barriers make it easier to move goods and services across borders. The alliance that achieves this for Mexico, Canada, and the United States is NAFTA, the North American Free Trade Agreement. It created a framework in which many products could be traded with little or no tariffs, reducing costs and encouraging companies to buy, sell, and invest across these borders. This means fewer obstacles like taxes on imports and export fees, and clearer rules about where a product comes from to qualify for those lower barriers. Other options represent different kinds of cooperation: the European Union is a European regional bloc focused on economic and political integration; NATO is a military alliance; and the Organization of American States is a political and diplomatic organization in the Americas. They do not specifically unite Mexico, Canada, and the United States to reduce trade barriers in the same way. Note that NAFTA has since evolved into the USMCA, but the idea remains to lower barriers to trade among the three nations.

Trade agreements that lower barriers make it easier to move goods and services across borders. The alliance that achieves this for Mexico, Canada, and the United States is NAFTA, the North American Free Trade Agreement. It created a framework in which many products could be traded with little or no tariffs, reducing costs and encouraging companies to buy, sell, and invest across these borders. This means fewer obstacles like taxes on imports and export fees, and clearer rules about where a product comes from to qualify for those lower barriers.

Other options represent different kinds of cooperation: the European Union is a European regional bloc focused on economic and political integration; NATO is a military alliance; and the Organization of American States is a political and diplomatic organization in the Americas. They do not specifically unite Mexico, Canada, and the United States to reduce trade barriers in the same way.

Note that NAFTA has since evolved into the USMCA, but the idea remains to lower barriers to trade among the three nations.