What was the purpose of NAFTA?

The purpose of NAFTA, or the North American Free Trade Agreement, was to eliminate trade barriers between the United States, Canada, and Mexico. This agreement aimed to facilitate free trade among the three countries by reducing or eliminating tariffs on goods and services, which encourages more trade and investment between the nations. By removing these barriers, NAFTA sought to create a more integrated and competitive economic environment in North America, ultimately benefiting consumers by lowering prices and expanding the range of available products.

The agreement was significant in fostering economic ties and trade relationships, as it allowed countries to specialize in industries where they had a comparative advantage. This specialization would increase efficiency and productivity across the three economies. Over time, NAFTA significantly altered the trade landscape in North America and had lasting effects on industries, labor markets, and the economy as a whole.