Which agreement allows open trade among the United States, Mexico, and Canada?

• A. NAFTA (North American Free Trade Agreement)
• B. Mercosur
• C. NGOs
• D. microcredit program

Answer: (A)

This question tests your knowledge of a trilateral trade framework that linked the United States, Mexico, and Canada to encourage free movement of goods and services. NAFTA was established to remove most tariffs between the three countries and to create consistent rules for trade, investment, and dispute resolution. This created more integrated supply chains and easier access to markets across the region.

It’s worth noting that while NAFTA laid the groundwork for open trade, it has since been updated and replaced by the USMCA, which continues the goal of freer trade among the three countries with modernized terms. The other options don’t fit because Mercosur is a South American bloc, NGOs are organizations, and a microcredit program is a financing approach rather than a trade agreement.