North American Free Trade Agreement - NAFTA
A trade agreement between Canada, the United States and Mexico that encourages free trade between these North American countries.
Investopedia Commentary
The agreement, implemented on January 1, 1994, is based on the premise that removing as many tariffs as possible between these North American countries will increase trade within the region and benefit each country's economy.
Related Links
What Is International Trade?
What Is The World Trade Organization?
See also: Balance of Trade, Dumping, Export, GATT, Globalization, Import, Quota, Tariff, WTO
Also spelled: NAFTA