key term - North American Free Trade Agreement (NAFTA)

Definition

NAFTA is a trade agreement between the United States, Canada, and Mexico that eliminates most tariffs and trade barriers among the three countries. It aims to promote economic integration and increase trade.

Related terms

Tariffs:

Taxes imposed on imported goods to make them more expensive than domestic products.

Trade Barriers: Restrictions or obstacles that limit international trade, such as quotas or regulations.

Economic Integration: The process of combining economies through agreements and policies to promote cooperation and reduce barriers to trade.