ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The goal of NAFTA was to eliminate barriers to trade and investment between the U.S., Canada and Mexico. The implementation of NAFTA on January 1, 1994, brought the immediate elimination of tariffs on more than one-half of Mexico’s exports to the U.S. and more than one-third of U.S. exports to Mexico.

Detailed explanation-2: -NAFTA is a comprehensive trade agreement that improves virtually all aspects of doing business within North America. NAFTA will eliminate tariffs completely, and removes many of the non-tariff barriers, such as import licenses, that have helped to exclude U.S. goods from the other two markets, especially Mexico.

Detailed explanation-3: -The agreement came into force on January 1, 1994. The goal of NAFTA is to eliminate all tariff and non-tariff barriers of trade and investment between the United States, Canada and Mexico.

Detailed explanation-4: -The North American Free Trade Agreement (NAFTA) is an agreement that brought together three North American countries, i.e., the United States, Canada, and Mexico, to form a trading bloc in North America.

Detailed explanation-5: -What Did NAFTA Actually Do? In short, NAFTA created a large free-trade zone reducing or eliminating tariffs on imports and exports between the three participating countries (the U.S, Mexico, and Canada).