NAFTA
Definition
NAFTA, or the North American Free Trade Agreement, is an agreement signed by Canada, Mexico, and the United States in 1994. It eliminated most tariffs on trade between these countries and created a trilateral trade bloc.
Analogy
Think of NAFTA as a friendship bracelet shared between Canada, Mexico, and the United States. The bracelet represents the elimination of barriers to trade and creates a strong bond between the three countries.
Related terms
Tariffs: Taxes imposed on imported goods that can increase prices for consumers.
Trade Bloc: A group of countries that join together to promote economic cooperation through reduced barriers to trade.
Globalization: The increasing interconnectedness and interdependence of economies worldwide.
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Practice Questions (3)
What are potential implications had NAFTA (North American Free Trade Agreement) never been enacted?
What historical trend did Zapatista’s rebellion against NAFTA in Mexico exemplify?
How might world history be different had the Zapatistas not challenged the Mexican government and NAFTA in the late 20th century?
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