What international treaty allows for free trade among Mexico, Canada, and the United States?

Study for the CLEP Business Law Test. Engage with flashcards and multiple choice questions, each question has hints and explanations. Prepare effectively for your exam!

The North American Free Trade Agreement (NAFTA) is the treaty that established a trilateral trade bloc between Mexico, Canada, and the United States. Signed in 1994, NAFTA aimed to eliminate trade barriers and promote economic cooperation among the three nations by reducing tariffs on goods traded between them. This agreement facilitated a significant increase in trade volume as it allowed for the seamless exchange of goods and services without many of the restrictions that typically exist in international trade.

The treaty also included provisions related to labor and environmental standards, making it a comprehensive framework focusing not just on economic interaction but also on social and environmental elements. The success of NAFTA paved the way for further negotiations and eventually led to the United States-Mexico-Canada Agreement (USMCA), which updated and replaced NAFTA to address contemporary trade issues.

The other options listed do not pertain specifically to the trade relations between Mexico, Canada, and the United States in the same way that NAFTA does. The General Agreement on Tariffs and Trade focuses on multilateral trade negotiations globally, while the Central American Free Trade Agreement is specific to Central America and the United States. The General System of Preferences relates to trade benefits provided to developing countries, which doesn't directly apply to the trilateral

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