North American Free Trade Agreement (NAFTA)
Definition
NAFTA is a treaty made in 1994 that created a free trade zone between the United States, Canada, and Mexico. It eliminated most tariffs on goods traded among these countries.
Related terms
Tariffs: These are taxes imposed on imported goods. They make foreign products more expensive to encourage people to buy domestic products.
Free Trade Zone: This is an area where goods can be manufactured, stored, handled, and re-exported without the intervention of customs authorities.
Trade Liberalization: This refers to reducing barriers like tariffs and quotas that restrict international trade.
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