What is a primary benefit of the North American Free Trade Agreement (NAFTA)?

The primary benefit of the North American Free Trade Agreement (NAFTA) is the facilitation of tariff-free trade among the member countries: the United States, Canada, and Mexico. NAFTA aimed to eliminate tariffs, which are taxes imposed on imported goods, thereby reducing the cost of trading between these countries. This promoted increased trade volumes, lower prices for consumers, and greater market access for businesses, stimulating economic growth in the region.

The agreement sought to create a more integrated economic landscape by removing barriers to trade and investment, fostering a competitive environment that benefited all three nations. The success of NAFTA in this area contributed significantly to the evolution of trade relations in North America and set a precedent for future trade agreements.

In contrast, while reduction of import quotas may have been a component of broader trade liberalization, it is not the primary focus of NAFTA. NAFTA also does not specifically increase export taxes, as it aimed to enhance trade fluidity instead. Furthermore, limiting labor mobility runs counter to the intentions of the agreement, which sought to facilitate not only the exchange of goods but also services and investment across borders.