Free Trade Agreement (NAFTA)

A Free Trade Agreement, like NAFTA (North American Free Trade Agreement), is a pact between countries—namely the U.S., Canada, and Mexico—that reduces or eliminates tariffs, quotas, and barriers on goods and services traded among them. This encourages easier, cheaper trade, allowing businesses to sell products across borders more freely, which can lower prices for consumers and increase economic growth. Such agreements also promote investment and economic cooperation. However, they may impact local jobs and industries differently, so the effects can be complex and often debated.