NAFTA, or the North American Free Trade Agreement, primarily affects relations between the United States and Canada by allowing free trade between the two countries. It was established to eliminate tariffs and reduce trade barriers, facilitating smoother and more efficient trading operations.
To clarify the options you provided:
- It does not ban immigration between the two countries.
- It does not open borders in a literal sense, as both countries still have immigration controls in place.
- It does not raise taxes on trade; rather, it aims to reduce or eliminate tariffs.
- It allows free trade between the two countries, which is the correct answer.
NAFTA, which came into effect in 1994, was replaced by the United States-Mexico-Canada Agreement (USMCA) in 2020, but the core principle of promoting free trade remains a significant aspect of U.S.-Canada relations.
1 answer