North American Trade Agreement (NAFTA)

Definition

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

Related terms

Free Trade:

The policy of allowing goods to be traded between countries without tariffs or other restrictions.

Tariffs:

Taxes imposed on imported goods to make them more expensive and protect domestic industries.

Economic Integration: The process of combining economies through agreements that reduce barriers to trade and investment.