What was the primary purpose of the North American Free Trade Agreement (NAFTA)?

• A. To establish a single currency for North America
• B. To eliminate trade barriers and promote free trade among the United States, Canada, and Mexico
• C. To restrict immigration between member countries
• D. To create a military alliance between North American countries

Answer: (B)

Verified step by step guidance

1. Understand that NAFTA stands for the North American Free Trade Agreement, which is a trade agreement between the United States, Canada, and Mexico.
2. Recall the main goals of trade agreements, which typically include reducing or eliminating tariffs, quotas, and other trade barriers to encourage the free flow of goods and services.
3. Recognize that NAFTA was designed to promote economic integration and cooperation among the member countries by making trade easier and more efficient.
4. Eliminate options that do not align with trade objectives, such as establishing a single currency, restricting immigration, or creating a military alliance, since these are outside the scope of a trade agreement.
5. Conclude that the primary purpose of NAFTA was to eliminate trade barriers and promote free trade among the United States, Canada, and Mexico.