Answered: The North American Free Trade Agreement…

The North American Free Trade Agreement (NAFTA) was established in 1994under the Clinton administration.a) What was the purpose of NAFTA?

Foundations of Business (MindTap Course List)

6th Edition

ISBN:9781337386920

Author:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Publisher:William M. Pride, Robert J. Hughes, Jack R. Kapoor

Chapter3: Global Business

Section3.5B: International Economic Organizations Working To Foster Trade

Problem 2CC

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Question

The North American Free Trade Agreement (NAFTA) was established in 1994
under the Clinton administration.
a) What was the purpose of NAFTA?

Expert Solution

Step 1

The North American Free Trade Agreement was an agreement signed by Canada, Mexico, and the United States to create a trilateral trade bloc in North America. The agreement came into picture on January 1, 1994 is to eliminate all tariff and non-tariff barriers of trade and investment between the United States, Canada and Mexico. NAFTA’s purpose was to encourage economic activity among North America's three major economic powers.

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