Which agreement allows open trade between the US, Mexico, and Canada?

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

Answer: (A)

Open trade is fostered by agreements that reduce barriers like tariffs and simplify rules for cross-border commerce. NAFTA was created to do exactly that for the United States, Mexico, and Canada, by eliminating most tariffs on goods traded among them and establishing common rules to facilitate investment and trade. Because it directly linked these three North American economies, it is the agreement most associated with open trade among them. Mercosur is a South American bloc, NGOs are organizations rather than trade treaties, and a microcredit program is a lending initiative. Note that NAFTA has since evolved into USMCA, but the concept remains: a treaty aimed at broad, tariff-free trade among the three countries.