Which term refers to the agreement that created a free trade bloc among the United States, Canada, and Mexico?

• A. General Agreement on Tariffs and Trade
• B. North American Free Trade Agreement
• C. Asian-Pacific Economic Cooperation
• D. European Free Trade Association

Answer: (B)

Regional trade agreements focus on reducing barriers among specific groups of countries. The agreement that created a free trade bloc among the United States, Canada, and Mexico is the North American Free Trade Agreement. It established tariff-free trade across many goods between the three nations and set rules of origin to determine eligibility. It entered into force in 1994 and later evolved into the USMCA in 2020, which kept the three-country bloc but updated provisions.

GATT was the broader, multilateral framework that preceded the WTO; APEC is a broad Asia-Pacific forum rather than a formal three-country bloc; EFTA is a European regional bloc. NAFTA specifically matches the description of a free trade arrangement among the United States, Canada, and Mexico.