ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Expansion of the agreement Indeed, in 2004 the Central America Free Trade Agreement (CAFTA) expanded NAFTA to include five Central American countries (El Salvador, Guatemala, Honduras, Costa Rica, and Nicaragua).

Detailed explanation-2: -Answer and Explanation: Reason: NAFTA was a type of agreement signed by the US, Mexico, and Canada and not by China. China is not a part of North America, but a part of Asia; and NAFTA was all about North America, for which only North American countries were considered.

Detailed explanation-3: -North American Free Trade Agreement (NAFTA) established a free-trade zone in North America; it was signed in 1992 by Canada, Mexico, and the United States and took effect on Jan. 1, 1994. NAFTA immediately lifted tariffs on the majority of goods produced by the signatory nations.

Detailed explanation-4: -The North American Free Trade Agreement (NAFTA), which was enacted in 1994 and created a free trade zone for Mexico, Canada, and the United States, is the most important feature in the U.S.-Mexico bilateral commercial relationship.