NAFTA

Definition

NAFTA (North American Free Trade Agreement) is an agreement between Canada, Mexico, and the United States that eliminates trade barriers among these countries. It promotes free trade by reducing tariffs on goods and services.

Related terms

Tariffs: Taxes imposed on imported goods to protect domestic industries.

Globalization: The process of increasing interconnectedness among countries through economic integration, communication, and cultural exchange.

Trade deficit/surplus: A trade deficit occurs when a country imports more than it exports, while a trade surplus happens when exports exceed imports.