NAFTA, signed on January 1, 1994, created a free trade area among which three countries?

• A. United States, Canada, and Mexico
• B. United States, Canada, and Brazil
• C. Canada, Mexico, and Japan
• D. United States, Mexico, and Spain

Answer: (A)

NAFTA created a free trade area among three North American countries—the United States, Canada, and Mexico. The agreement was designed to reduce or eliminate tariffs and other trade barriers on goods and some services traded among these nations, helping to integrate their economies and encourage cross-border investment. It also established rules of origin to determine which products qualify for tariff-free treatment and included side agreements on labor and environmental standards to address broader effects of increased trade. The other options include countries that are not part of NAFTA (Brazil in South America, Spain in Europe, Japan in Asia), so they don’t fit the agreement.