Which trade agreement involves the U.S., Canada, and Mexico?

• A. Trans-Pacific Partnership
• B. European Union
• C. Asia-Pacific Economic Cooperation
• D. North American Free Trade Agreement

Answer: (D)

The answer reflects the three-country economic agreement that linked the United States, Canada, and Mexico. North American Free Trade Agreement, or NAFTA, was designed to reduce or eliminate trade barriers among those nations, making it easier to trade goods and invest across borders. It established rules to eliminate most tariffs on products moving between the countries and created a framework for cross-border economic cooperation, along with protections for intellectual property and guidelines for labor and environment considerations.

The other options involve different regions or types of agreements that don’t specifically bind those three nations together. Trans-Pacific Partnership targets economies around the Pacific Rim, the European Union is a political and economic union of European countries, and Asia-Pacific Economic Cooperation is a broad regional forum rather than a single binding agreement. Note that NAFTA has since been updated and renamed USMCA, but the three-country arrangement remains the defining feature.