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Which trade bloc was created to encourage free trade and economic cooperation between Canada, Mexico, and the United States?A.CAFTA-DRB.The EUC.ASEAND.NAFTA

Question

Which trade bloc was created to encourage free trade and economic cooperation between Canada, Mexico, and the United States?

A. CAFTA-DR
B. The EU
C. ASEAN
D. NAFTA

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Solution

The trade bloc created to encourage free trade and economic cooperation between Canada, Mexico, and the United States is D. NAFTA (North American Free Trade Agreement).

NAFTA was implemented in 1994 and aimed to eliminate trade barriers and promote economic integration among the three countries. It facilitated the movement of goods and services, and it has played a significant role in enhancing trade relationships within North America.

In 2020, NAFTA was replaced by the United States-Mexico-Canada Agreement (USMCA), which modernized various aspects of the original agreement while retaining its key principles of promoting free trade and economic cooperation among the three nations.

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